BBVA Launches Hostile Bid for Sabadell, Eyes European Banking Supremacy

Spain’s second-largest bank is making a bold move — and not everyone’s thrilled.

BBVA will officially kick off its €15 billion hostile takeover bid for rival Sabadell on Monday, September 8, after receiving the green light from Spain’s stock market regulator, CNMV. The offer window will remain open until October 7, with results expected by mid-October.

🏦 A Bid to Build a Banking Giant

The proposed merger would create a European heavyweight capable of challenging the likes of Santander, BNP Paribas, and HSBC. BBVA says Sabadell shareholders could see 25% higher earnings per share post-merger — a tempting carrot in a competitive market.

“It’s Sabadell’s best valuation in over a decade,” said BBVA Chair Carlos Torres Vila.

🧱 Sabadell Pushes Back

Sabadell’s chairman Josep Oliu isn’t buying it. He called the offer “weak” and based on “unrealistic assumptions,” arguing that Sabadell has outperformed BBVA since the bid was first announced in 2024.

To fend off the takeover, Sabadell sold its UK subsidiary TSB to Santander for €3.1 billion, a move analysts say could boost its financial flexibility and make BBVA’s offer less appealing.

⚖️ Political & Regulatory Roadblocks

The Spanish government has imposed a three-year freeze on any merger between the two banks to protect market competition — a major hurdle for BBVA’s ambitions. Despite this, BBVA has cleared approvals from the European Central Bank and Spain’s competition authority.

📊 What’s Next?

With Sabadell’s ownership widely dispersed — no shareholder holds more than 7% — the outcome remains uncertain. BBVA must secure over 50% of voting rights to move forward.