Spanish Regulator Approves BBVA's Enhanced €17B Sabadell Takeover Bid

The Spanish financial regulator CNMV has approved BBVA's improved €17 billion ($20 billion) takeover bid for Banco Sabadell, allowing the shareholder acceptance period to resume until October 10. The revised offer eliminates the cash component, making it a fully share-based transaction and increasing the value by 10% to €3.39 per Sabadell share, which provides a tax advantage for Sabadell shareholders. BBVA's chairman described the offer as historic and providing substantial value, with Sabadell shareholders set to obtain a 15.3% stake in the merged entity. Despite the enhancements, Banco Sabadell's management, including CEO César González-Bueno, remains critical and likely will not recommend the deal, considering the price insufficient. The bid reflects a premium over recent market prices, although Sabadell's shares have underperformed compared to BBVA's since the offer's announcement. This transaction marks a significant consolidation move in the Spanish banking sector, with BBVA seeking to strengthen its position through this acquisition.