BBVA wants Sabadell against the wishes of the administration (and the Spanish Government). What business is this and how does it affect Portugal?

BBVA transformed the purchase proposal for Sabadell, made on the last day of April, into a hostile offer. With the rejection of Sabadell’s management, BBVA is now looking for the shareholders of the Catalan-based bank to sell their position. The Spanish Government, which has to approve it, has already expressed its opposition. Everything will now take more than half a year, with room for twists and turns, especially because this is a rare type of transaction in Europe.

The hypothesis of a hostile takeover bid (OPA) by BBVA over Sabadell was already mentioned, taking into account the latter’s fragmented shareholder structure, without reference investors (the American asset manager BlackRock, with 3.6%, is the main capital holder). And it was the option that BBVA followed, offering Sabadell shareholders the same conditions that the management of that bank had refused and which they considered “undervalued” it.

Around 12 billion euros are offered, in line with the current market value of Portuguese retailer Jerónimo Martins, the owner of Pingo Doce supermarkets. The price represents a premium of 30% over the value of the shares before the first offer, the friendly one, and will give 16% of the entity resulting from the merger to Sabadell shareholders. A price offered four years after another (failed, at that time) attempt at union.