BBVAs join the takeover bid for Sabadell

your data grandpa about the affairs of Sabadell Bank to the National Securities Markets Commission (CNMV), with the corresponding request for authorization about the operation. a necessary procedure to continue his path until he would take over the bank in Alicante and that, as the president of BBVA, Carlos Torres, put forward, would happen approximately two weeks after the takeover. the announcement of the takeover on the smaller sofa.

The Bilbao entity led by Carlos Torres has officially communicated the offer to the CNMV, the national stock market regulator, as a first step to advance a process that could take time. six to eight months. Meanwhile, the bank needs the consent, approval or non-opposition – whatever you want to call it – from other organizations to carry out the operation. The BBVA-Banco Sabadell takeover bid is necessary Okay of one's own CNMV but also from Bank of Spainof the CNMC in terms of banking competition or Government, which does have the authority to approve or deny the subsequent merger of the entities. But in addition to the authorizations at the national level, BBVA must also do that explanation of how it worksand its intentions, to regulators around the world. From Morocco to the Bahamas.

In a statement of only four pages sent on Friday afternoon to the CNMV, the offering entity itself, BBVAexplains everything in one paragraph organisms to whom the operation should be communicated. All this with a later nuance: approval does not necessarily have to be granted of this, according to current legislation, in order to be able to proceed with the intention to take over the bank led by Josep Oliu.

The countries in which BBVA must present its offer

First of all, in addition to the approval by the Bank of SpainBBVA must communicate its proposal to the European Central Bank (ECB) as a European entity. The interested bank explains in the aforementioned paragraph that this authorization relates to the acquisition of indirect control over, or the indirect acquisition of a significant participation in, the subsidiaries and participated foreigners of the entity that is the object of the operation. These are all the countries in which BBVA must submit its takeover proposal and subsequent merger with Banco Sabadell:

  • United Kingdom. First of all, BBVA must communicate to the British regulator the details of the takeover bid that Carlos Torres' bank has made for the shares of Banco Sabadell. This is due to the role that the Alicante bank plays with its subsidiary in Great Britain TSB Bank PLC.
  • France. BBVA must communicate its takeover proposal for Banco Sabadell's shares to the neighboring country's regulators, as stated in the detailed prospectus sent to the CNMV on Friday by Banco Sabadell's Paris office.
  • Mexico. As mentioned in BBVA's detailed brochure on the offer to acquire shares of Banco Sabadell, Carlos Torres' entity must also communicate the operation to the Mexican Multiple Banking Institution, without necessarily having to obtain approval from said supervisory institution for the takeover bid on the shares of the bank of Alicante. Also regarding Mexico, the bid requires approval because of the role it plays Sabcapital, as a subsidiary of Banco Sabadell, on the other side of the Atlantic Ocean.
  • Bahamas. Also in the Americas, BBVA's operation on Banco Sabadell must be communicated to the regulators of the Bahamas. In this case it has to do with the role of Atlantic Bank in that country also an international subsidiary of Banco Sabadell, and Bank & Trust Ltd, in liquidation on the islands.
  • Cuba. Another country where BBVA must submit its offer for Banco Sabadell shares is Cuba, where Financiera Iberoamericana, as the Cuban central bank, must at least receive information about the operation.
  • UNITED STATES. The operation requires the approval of several US authorities, in addition to the approval of Mexico, the Bahamas and Cuba, in this case to gain indirect control over Sabadell Securities USAa broker-dealer subsidiary of Banco Sabadell in the United States
  • Morocco. Within this long list of communications as part of the takeover process for Banco Sabadell, BBVA must also transfer the details of the operation to the Central Bank of Morocco, outside Europe and the United States, in this case due to the change of indirect control in the Banco Sabadell branch White Houseone of the major cities of Morocco.

The bank itself explains, after this long list of countries from several continents, that the effectiveness of the takeover bid for Banco Sabadell “is not subject “provided that approval is obtained” from any of these countries or from their regulatory authorities. According to Carlos Torres' bank, this is stated in Article 26.2 of Royal Decree 1066/2007, the rule that regulates this type of operation. BBVA estimates, according to its own deadlines, that the process to complete the takeover bid could take as long as eight months, so that the union of the two banks – if it finally goes ahead – will probably not take place until late 2024 or later. early 2025.

How has each bank responded?

The presentation of takeover brochure from BBVA to the CNMV on Friday afternoon around 6 p.m., the new chapter of the takeover bid for Banco Sabadell remained without effect on the markets. However, the actions of both banks they react to the stock market with increases early this Monday morning, during the session immediately following the announcement.

So, Banco Sabadell leaves again this Monday, with increases of 1.20% since the opening of the Ibex itself, bringing it to a price of 1.93 euros per share. The bank therefore remains in the quote maximums of the last sessions, since the surprise announcement of the merger – and subsequent takeover – of BBVA, at the best level since 2015. In fact, Oliu's entity is the best priced on Capricornwhich is the green leader compared to others such as Sacyr, Repsol or Acciona, with increases of around 0.70%.

Also BBVA trades in green in the first moments of the session, with shares rising 0.46% until they traded above 10 euros per share again. However, shares of the Bilbao-based bank failed to recover May highs in some sessions after first announcing the intention to merge and then the takeover bid for Banco Sabadell.

Despite making the statement to the CNMV on Friday afternoon, the directors of Banco Sabadell sent one new encouraging message to the staff after BBVA wanted to take over the bank. For example, the president and CEO of Banco Sabadell, Josep Oliu and César González-Bueno, issued a joint message reiterating that this is a “Hostile take-over”. “It will be a long process that will follow a series of very complex authorizations that will take months. let's give it our all“González-Bueno reminded his employees.

There is nothing new. Let me emphasize that this is a Hostile take-over, That is to say, it has not been agreed upon nor requested by the bank's board,” Oliu said in a new audiovisual content addressed to his staff. The president of the entity, based in Alicante, has reiterated his confidence in the individual growth of the bank again as justification for the rejection of BBVA's offer. “(The board) is convinced that Banco Sabadell's project alone will generate more value for its shareholders, customers, staff and society in general,” the bank's management defends at all costs.

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