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The Spanish National Securities Market Commission (CNMV) has approved the transaction of BBVA and Banco Sabadell. The take-up period is scheduled to begin on Monday, September 8, 2025 for Banco Sabadell shareholders to accept BBVA's proposal. It is a very attractive offer, whose current equivalent value represents Banco Sabadell's best valuation in more than a decade, while incorporating a premium clearly higher than that of recent similar transactions in Europe. As this is a share offer, its attractiveness also stems from BBVA's current valuation and its upside potential. Following the merger, Banco Sabadell shareholders are set to obtain earnings per share 25 percent higher than they would with a standalone Banco Sabadell. "The union of two highly complementary banks at their best moment has an undeniable logic, and is beneficial for shareholders, customers and employees of both entities, and society as a whole. We invite Banco Sabadell shareholders to join this integration project with BBVA, the best possible partner, and a European leader in growth and profitability. Now is the time," BBVA Chair Carlos Torres Vila said.
The offer involves the exchange of one common share in BBVA plus €0.70 in cash for every 5.5483 Banco Sabadell shares, which would give Banco Sabadell shareholders a stake of 13.6 percent in BBVA, thus benefiting from the value generated by the project.
This is a highly attractive offer for Banco Sabadell shareholders for several reasons:
Following BBVA's offer, Banco Sabadell share price stands at its highest level in more than a decade.
The current equivalent value of the offer has increased by 43 percent since the day previous to the merger talks being made public, on April 29, 2024, rising from the initial €12.2 billion offer to the current €17.4 billion.
The offer represents a significant premium above Banco Sabadell share price on the day previous to the merger talks being disclosed: 30 percent over the closing price on April 29, 2024; and 42 percent over the weighted average price for the month prior to that date. This premium is well above that of similar transactions in the European banking industry over the past two years (c. 30 percentage points above the average premium of those deals).
BBVA's current valuation and its upside potential. Analysts forecast an upside of up to +8 percent for BBVA shares, while Banco Sabadell's could see a downward correction of around -3 percent.
While the implementation of total synergies -estimated at €900 million per year following the merger- would be delayed for one year compared to the original scenario (i.e. 2029 instead of 2028) due to the condition imposed by the Spanish Council of Ministers, the preparation for the integration in previous years will enable the full realization of synergies in the first year following the merger.
The transaction will create significant future value for Banco Sabadell shareholders, who will obtain earnings per share (EPS) 25 percent higher than what they could with a standalone Sabadell.
Posted In: BBVA
