"Spain’s market regulator approves BBVA’s increased takeover bid for Sabadell
By Reuters
September 25, 2025, 1:22 PM GMT+6 — Updated 46 minutes ago"
"The Banco Bilbao Vizcaya Argentaria (BBVA) logo is displayed on the facade of the bank's headquarters in Madrid, Spain, May 16, 2025. REUTERS/Ana Beltran/File Photo."
MADRID, Sept 25 (Reuters) – Spain's stock market regulator on Thursday approved banking group BBVA's (BBVA.MC) enhanced 17 billion euro ($20 billion) offer for smaller rival Sabadell (SABE.MC), which was announced on Monday.
Shareholders now have until October 10 to submit their shares, an extension from the previous deadline of October 7, with results expected to be released seven days after the close of the acceptance period.
BBVA Enhances Sabadell Takeover Bid Amid Board Skepticism
Sabadell Board to Review New Offer
Sabadell has up to five days from the authorisation to provide an official opinion on BBVA’s improved takeover bid. Despite this, Chief Executive Cesar Gonzalez Bueno has indicated that the board would "probably" not recommend the new price, which he continues to consider insufficient. The cautious stance reflects ongoing concerns among Sabadell executives about whether the revised offer truly reflects the bank’s strategic and financial value.
Revised Offer Details
Under the new terms, BBVA is proposing an exchange ratio of one BBVA share for every 4.8376 Sabadell shares. This adjustment represents a significant increase from the previous offer and is aimed at making the deal more attractive to Sabadell shareholders. The revised valuation amounts to 3.39 euros per Sabadell share, approximately 17 billion euros in total, compared to the previous bid of 3.084 euros per share, or roughly 15.5 billion euros. This increase of about 10% is calculated based on closing prices on September 19 and reflects BBVA’s intent to strengthen its acquisition proposal.
Strategic Implications
The enhanced offer highlights BBVA’s determination to consolidate its position in the Spanish banking sector by acquiring Sabadell, a smaller but strategically significant rival. If approved, the transaction could reshape the competitive landscape in Spain’s banking industry, creating synergies in retail and corporate banking operations. Analysts suggest that the deal may also lead to operational efficiencies, though integration risks and potential regulatory scrutiny remain key factors. Shareholders will closely monitor Sabadell’s board opinion, which will likely influence the market response and the likelihood of deal completion.
BBVA Sabadell Takeover Bid Sees Premium Increase Amid Market Movements
Initial Premium and Market Reaction
BBVA's latest bid for Sabadell initially represented a modest premium of 1.6% over Friday's market close. The premium reflects BBVA's effort to make its takeover proposal more attractive to Sabadell shareholders while maintaining a competitive offer in line with market valuations. Early reactions from investors were cautious, as analysts weighed the potential benefits and risks of the deal.
Premium Adjustment Due to Share Performance
Since the announcement of the improved offer, Sabadell shares have underperformed relative to BBVA shares. This discrepancy has caused the effective premium of the offer to rise, reaching 2.89% by Wednesday's close. Market experts note that such fluctuations are common in merger scenarios, where the relative performance of target and acquirer shares can directly affect perceived value. The updated premium underscores the increasing attractiveness of BBVA's offer for investors seeking long-term value.
Financial Context and Implications
Based on the current exchange rate of $1 = 0.8482 euros, the revised valuation continues to draw attention from both shareholders and regulators. Analysts suggest that the growing premium may influence Sabadell's board deliberations, investor sentiment, and eventual acceptance of the bid. Beyond immediate market impacts, the deal is expected to have broader strategic implications, including potential operational synergies, enhanced market presence for BBVA, and strengthened competitiveness in Spain’s banking sector. Shareholders will monitor developments closely as the process unfolds.
Reporting by Jesús Aguado. Editing by Inti Landauro and Mark Potter.
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