Breakingviews - BBVA leaps into $16 bln hostile M&A high-wire act

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Jul 01 2025

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Source: Reuters

BBVA's Bid for Banco de Sabadell: Carlos Torres Vila, chair of BBVA, is persisting with his bid for Banco de Sabadell despite challenging conditions imposed by the Spanish government, which require maintaining Sabadell as a separate entity for three years. The current offer values Sabadell at 13.7 billion euros, but rising market prices for Sabadell's shares may necessitate an increased bid.
Financial Implications and Challenges: While BBVA could see significant earnings from the acquisition by 2028, the need to raise the offer could diminish returns for BBVA shareholders. Additionally, the potential sale of Sabadell's UK unit, TSB, complicates the situation further, as it may strengthen Sabadell's position and increase the price they demand from BBVA.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.