BBVA And Bankia: Are They The Main Banks Interested In Buying Popular?

Banco Popular's buyingSpanish Banco Popular

Banco Popular said on Tuesday that in the context of the strategic options for the bank unveiled during its AGM, including a combination of businesses, several entities have expressed interest in exploring a possible operation of this kind.

So the bank has embarked on an initial exchange of information with these institutions which yesterday had to indicate a preliminary interest in continuing to study a possible deal. This information will not be binding, but will allow Banco Popular to advance in its analysis of options, which it has said openly includes the possible sale of the lender.

Popular is continuing with its plans, is in talks to sell non-strategic assets, is preparing to strengthen its capital and its own resources, and is looking into the possible combination of activities with other banks. So far, the bank has not made any definite decision with regard to the different alternatives.

In short, Popular has not made any kind of commitment, nor has it received any firm, concrete proposal. And there is no certainty regarding the consideration such a proposal would deserve, nor has the bank thought about the decision the board would make if, in the event, the proposal was firmed up. That said, there is a lot of speculation in today’s press about the two main interested parties in buying Popular, namely BBVA, in the process of issuing new shares, and Bankia.

According to various media outlets, a tentative calendar for the operation points to the second part of the sale process beginning 10-15 June. These are the dates when Popular should receive a concrete offer and be able to close the sale before end-June if there is an agreement reached.

The market is reacting and Popular’s shares are still very volatile (-1.1% in yesterday’s session), despite the Ibex 35’s good performance, as news about the bank’s sale to various domestic lenders continues to circulate.