Spanish incumbent bank BBVA has launched a hostile takeover bid to acquire rival Banco Sabadell.
Earlier this week, Sabadell rejected BBVA’s offer of €12 billion, causing a stir in the Spanish financial sector, as no Spanish bank has attempted a hostile takeover in decades.
Josep Oliu, the chair of Sabadell, accused BBVA of breaching Spain’s tender offer regulations, leading to a negative reaction from the government of Madrid regarding the takeover. Despite this, BBVA chair Carlos Torres is determined to push the deal forward, appealing to regulators for support.
Following the announcement, BBVA’s shares fell by 6%, while Banco Sabadell’s rose by over 3%. Since discussions of a potential acquisition began in 2020, Sabadell’s shares have increased fivefold, and BBVA’s shares have seen a 160% rise.
Torres and Oliu previously faced off in 2020 when BBVA’s attempt to acquire Sabadell failed. Reports suggest that the CEO of Sabadell and BBVA’s CFO canceled a scheduled meeting in London this week and returned to Madrid.