Overview

• The government has until June 27 to decide whether to impose further conditions on BBVA’s hostile takeover bid for Banco Sabadell or approve the deal under existing CNMC commitments.
• Banco Sabadell’s board is exploring a sale of its UK arm, TSB, to bolster shareholder returns and strengthen its position against BBVA’s offer.
• Natwest has withdrawn from the TSB bidding, narrowing the field to Barclays and Santander, both of which are conducting due diligence on the unit.
• Analysts estimate that proceeds from a TSB sale could double Sabadell’s planned shareholder distributions for 2025.
• Opposition from the Catalan government and concerns over SME financing are expected to influence Madrid’s review of the takeover bid.