Spanish banking giant BBVA received overwhelming support from shareholders for a capital increase to pursue a hostile takeover of smaller rival Sabadell. The extra funds will allow BBVA to issue over 1.1 billion shares, potentially raising up to 552 million euros. The success of the bid hinges on Sabadell shareholders accepting the offer of exchanging one BBVA share for every 4.83 Sabadell shares.
Chairman Carlos Torres Vila expressed confidence in the merger, highlighting the benefits for both sets of shareholders. The proposed merger, if successful, would create a stronger and more profitable bank capable of rivaling leading Spanish bank Santander and European giants like HSBC and BNP Paribas.
Despite initial rejection by Sabadell in November 2020, BBVA proceeded with the takeover bid, which has also faced opposition from the Spanish government over concerns about job losses and reduced competition. Economy Minister Carlos Cuerpo has asserted government authority in authorizing the operation.