BBVA maintains the same conditions that it offered to the board of Sabadell (SAB) and that the latter rejected, so now “the ball is in the court” of the shareholders of Sabadell (SAB), who will determine whether the operation goes ahead or not. BBVA shares received the news with declines of 5% while those of Sabadell (SAB) rose 4%. As Jefferies pointed out in its analysis of the offer, “Despite…
Banco Sabadell (SAB) has rejected the offer that BBVA (BBVA) had made last week to merge the two entities, considering that it will generate more value on its own, the bank has informed the National Securities Market Commission (CNMV). Sabadell’s board, which met on Monday to assess the offer, based its decision on the opinion that it could create greater shareholder value by remaining alone. BBVA’s proposal was for a…
Jefferies | BBVA (Buy) submitted an offer for Sabadell (Restricted) less than 24 hours after BBVA’s interest was leaked to the press. The deal implies c4% EPS enhancement and a 30bps capital cost for BBVA, in line with our baseline published yesterday (3% and -20bps respectively) as the higher premium (30%) is offset by larger cost synergies (€850m vs. our €550m estimate). Deal logic is sufficiently clear and valid for…
Jefferies | A press leak earlier this morning seems to have unveiled renewed merger talks between BBVA (Buy) and Sabadell (Restricted). We provide some food for thought and outputs under different scenarios. We can see the merits for such a deal from the vantage of BBVA, but we remain expectant on whether both parties can agree on sensible terms. Our baseline scenario suggests 3.5% EPS accretion on just 20bps CET1…
Link Securities | BlackRock has downgraded its stake in Banco Sabadell from the 4.460% it held since 14 February to 3.964%, according to the notification sent on Monday to the Comisión Nacional del Mercado de Valores (CNMV), reported Europa Press. Taking into account the current share price of the Catalan bank, BlackRock’s stake is valued at around €215 million. With this reduction, the fund’s stake in the bank is the…
The banking tsunami generated by the collapse of SVB and Signature Bank – which the Fed wants to close by offering to buy bonds at par, not at market price, from banks in need of liquidity – threatens to turn into a financial crisis. That is the threat today from markets that are out for blood to stop interest rates rising. The big European banks, such as Santander and BBVA,…
Renta 4 | In line with information in the press and without any official figures on the transaction, Sabadell would have put an end to the alliance with Indra and NTT Data, who own 20% of if its back office subsidiary (BSOS). This move would be in response to the change in the bank’s strategy and the reduction in the workforce at BSOS after the voluntary departure programme in 2020….
Singular Bank | The ECB revises and determines minimum capital requirements for each lender annually so that, in function of its own funds, it has an established guarantee of solvency. In this respect, for 2023, BBVA will have to have a CET1 ratio of 8.72% (vs 8.60% in 2022) and a total capital level of 12.97% (vs 12.76%). In the case of Sabadell, the CET1 will have to be 8.65%, compared…
Alphavalue/ Divacons | The Catalan lender has received binding offers from France’s Worldline and Italy’s NEXI for its payment business which it put up for sale in September. The offers are between 300 and 350 million euros, with that from Worldline (part of our model portfolio) seeming to be the highest. Sabadell is said to be looking for 400 million euros.
Renta 4 | Banco Sabadell (SAB) has announced it is in the process of analysing a possible strategic agreement with an industrial partner, specialising in the payments business. According to Reuters, citing three sources speaking on condition of anonymity, the Spanish lender has received indicative bids from France’s Worldline, Italy’s Nexi and US firm Fiserv for its payments arm. The deal is valued at up to 400 million euros, the…