Banc Sabadell buries the takeover bid and opens a new era

BarcelonaNow the episode of BBVA's takeover bid for Banco Sabadell is truly over. With the closing of the sale of the British subsidiary TSB to Banco Santander, and the distribution of an extraordinary dividend of 50 cents per share on May 29, the bank closes a chapter in its 145-year history and begins a new one. The challenge is to prove that, after years of integrating entities in Spain (Atlántic, Guipuzcoano, or Urquijo), it will do better alone than in a bad partnership. After next Wednesday's shareholders' meeting, it will be a bank completely focused on the Catalan and Spanish market, with the challenge of deepening digitalization, but at the same time maintaining the characteristic of personal service with clients and, above all, with companies.

At the helm will be a new CEO, Marc Armengol, until now the head of TSB, a man from within the company, an expert in technology and digitalization. He will replace César González-Bueno, who in February announced he was leaving the position after more than five years at the helm, during which he turned it around significantly. He joined the bank shortly after the previous merger attempt with BBVA failed, and he leaves after, along with the chairman, Josep Oliu, scuttling the second attempt.

Together with the return of the registered office to Sabadell, the sale of TSB agreed last July was another stone in the path for the takeover bid. BBVA sought to reduce the weight of its business in Mexico and Turkey with Sabadell's assets in Spain and the United Kingdom. And Santander gained weight and curbed the aspirations of its great competitor, BBVA, in the attractive UK market. Too many obstacles in an operation that was already born with a bad start by launching a takeover bid just three days before the 2024 elections in Catalonia.

Now, Sabadell will have to prove to the small shareholders, who remained loyal during the takeover bid, that a lighter and solo bank will succeed. And in the future, if the banking business worsens – today it is too good to think about integrations – it will be seen if it can lead some merger.