July 23, 2024 | 4:35

Bilbao

BBVA can make a final offer to Sabadell before going to the hostile takeover bid

BBVA profits grow 19.1% in the first quarter, defying the special tax

Jesus Carames

May 7, 2024 | 3:45 p.m.

BBVA could improve its initial offer for Sabadell by adding a cash portion, which would make the proposal more attractive. Although the parties have not reached an agreement so far, the Basque bank, led by Carlos Torres, would have room for maneuver to improve the offer without affecting its future financial ratios. This would provide credibility and confidence to Sabadell shareholders, who have been skeptical following recent market movements.

The merger of both entities could offer mutual benefits given current economic conditions. Although Sabadell has managed to increase its valuation and improve its interest margin thanks to the ECB's rate increases from 2022, the possible modification of the ECB's monetary policy in June could affect the future growth of companies that operate mainly in Europe, such as This is the case of Sabadell.

If BBVA does not reach an agreement with Sabadell, it could consider acquiring other entities such as Bankinter or Unicaja. Bankinter has a market capitalization of 6.600 billion euros and has fewer offices and employees than Sabadell, which could make it an attractive target. Unicaja could also be an option for BBVA, due to its strong presence in Spain and its potential to improve financial margins.

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