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40m ago

BBVA’s Hostile Bid for Sabadell Collapses With Only 25% Shareholder Support

BBVA will boost shareholder returns after regulators confirmed the offer fell short.

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Archivo - El presidente del BBVA, Carlos Torres Vila (d), y el presidente del Banco Sabadell, Josep Oliu (i),
A Banco Bilbao Vizcaya Argentaria SA (BBVA) bank branch in Valencia, Spain, on Tuesday, May 27, 2025. Spain’s bank stocks could be active Tuesday as the country’s government is set to announce its decision on a review of BBVA’s hostile offer to acquire smaller peer Banco de Sabadell SA. Photographer: Michael Robinson Chavez/Bloomberg
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Overview

  • Spain’s CNMV said the offer drew 25.33% of Sabadell’s capital and 25.47% of voting rights, below the 30% minimum, so the takeover lapses and no second bid is allowed.
  • BBVA chairman Carlos Torres acknowledged the failure and set a €1 billion share buyback to start on October 31 and an interim dividend of €0.32 per share on November 7, with an additional buyback planned pending ECB approval.
  • Sabadell reported that among retail shareholders with shares held at the bank, only 1.1% accepted and 29.7% rejected, underscoring strong grassroots opposition.
  • Political and regulatory leaders welcomed the outcome, with Spain’s economy minister citing respect for shareholder decisions and Catalonia’s president praising a banking structure aligned with regional needs.
  • BBVA’s US-traded ADRs rose about 7% after the announcement, while the result preserves Sabadell’s independence and highlights calls to clarify Spain’s takeover pricing rules for potential second offers.