Spanish banking giant BBVA has confirmed that it holds €8 billion ($9.4 billion) in capital to finance a mandatory cash offer for Banco Sabadell, should its current hostile takeover bid fail to secure majority shareholder approval.
In an exclusive interview with Reuters, BBVA CEO Onur Genc stated that the bank remains confident of gaining over 50% of Sabadell’s shares to complete its €17 billion ($19.96 billion) all-share acquisition. However, if the bank ends up with between 30% and 50%, Spanish market regulations would require BBVA to either launch a mandatory cash bid for the remaining shares or abandon the deal.
Shareholders of Banco Sabadell have until October 10 to decide on the proposal, which has stirred debate within Spain’s banking sector since BBVA’s initial offer in April 2024.
A successful merger would create one of Europe’s largest lenders, with total assets of approximately €1 trillion, further strengthening BBVA’s position across retail, commercial, and digital banking markets.
