BBVA loses €17bn bid to acquire smaller Spanish competitor Sabadell

BBVA's Failed Takeover Bid: BBVA's attempt to acquire Banco Sabadell has failed, with only 25.47% of shareholders supporting the bid, falling short of the required 50%. This marks another setback for BBVA chair Carlos Torres, who has previously attempted to acquire Sabadell.

Political and Social Backlash: The takeover attempt faced significant opposition from various stakeholders, particularly in Catalonia, where Sabadell was founded. The Spanish government also expressed concerns about competition and consumer impact, imposing conditions that would hinder a merger for at least three years.

Impact on Banking Landscape: Despite the failure of BBVA's bid, proponents of banking consolidation argue that mergers could enhance competitiveness and innovation in the eurozone. However, similar takeover attempts in Europe, such as UniCredit's bid for Banco BPM, have also faced governmental opposition.

Future Plans for BBVA: In response to the failed bid, BBVA announced a share buyback and an interim dividend, while Torres emphasized the bank's strategic plan for growth and profitability from 2025 to 2028.