The Spanish financial landscape saw a significant development with the definitive failure of BBVA's ambitious takeover bid for Banco Sabadell. This outcome, confirmed by regulatory bodies, immediately sent ripples through the stock market, leading to a notable surge in both banks' share prices as investors reacted to the dissipating uncertainty surrounding the potential merger.
The Failed Bid and Market's Response
BBVA's public acquisition offer (OPA) for Banco Sabadell concluded with only 25.47% of voting shares accepting the proposal, falling significantly short of the 50% threshold required for its approval. This definitive rejection, communicated by the National Securities Market Commission (CNMV), prompted a striking reaction on the stock market. On the first trading day following the confirmation, Banco Sabadell's shares surged over 4%, while BBVA's also advanced more than 3%. This seemingly counter-intuitive market behavior is often attributed to a technical adjustment: the acquiring bank's shares tend to recover value lost during the bid process, and the target bank's shares typically rise as the uncertainty surrounding a potential merger is lifted.
Aftermath and Future Strategies
The OPA, which had been in motion for 17 months, not only failed to secure the necessary 50% acceptance but also did not reach the 30% minimum that would have allowed BBVA to pursue a second cash offer. Consequently, all acceptances received have been rendered void, with BBVA set to absorb the costs associated with the process, and Sabadell shareholders retaining their original titles. Looking ahead, this failure marks a new strategic chapter for both entities. BBVA has announced plans for accelerated shareholder remuneration through dividends and share buybacks, while Banco Sabadell is reportedly gearing up for corporate operations designed to solidify its position as an independent financial institution within the Spanish market.
