Torres (BBVA) on the Sabadell takeover bid: "The offer is what it is. If it doesn't work, it's okay."

Barcelona"It's not every day that an opportunity like this arises." This is how BBVA Chairman Carlos Torres began his remarks during the press conference to present the takeover bid at Banc Sabadell. whose prospectus has been approved by the National Securities Market Commission (CNMV)Accompanied by CEO Onur Genç, Torres emphasized the advantages of the transaction and asserted that, as it is largely in BBVA shares, which have risen, the value of the offer proposed almost a year and a half ago has gone from Sabadell's valuation of €12.2 billion to €17.4 billion. "The offer is what it is," and if the objectives are not met because there are not enough shareholders who join, "absolutely nothing happens," since BBVA has its own project, he asserted. The bank can modify its offer up to five days before the end of the acceptance period, a point Torres insisted on rejecting.

He insisted that BBVA's offer to Sabadell shareholders, who will have until October 7 to decide starting next Monday, "is very attractive." And this is despite the fact that Sabadell's shares are trading on the market at a higher price than BBVA's. The bank's chairman has downplayed the importance of the offer. the possibility of settling for a minimum of 30% of the capital, instead of the 50.01% threshold it announced on May 9, 2024. This information was submitted to the US securities regulator and includes all possible scenarios, which are facts or options that do not necessarily occur, but cannot be ruled out; and it has insisted that the objective is to achieve "control" of the Catalan bank's capital. "We do not intend to withdraw the condition of reaching a minimum of 50.01 percent," it concluded.

A "stronger and more capable" entity

During his presentation, he emphasized that the takeover bid will generate "significant" value creation and remains attractive to both Sabadell and BBVA shareholders. It will be an institution with "a larger, stronger scale and greater capacity to support families and businesses" and also with greater capacity to invest in technology, a growing aspect in the coming years. With greater scale, "these costs can be diluted," he said. Furthermore, complementary businesses are being combined: Sabadell in SMEs and BBVA in the retail segment. It is, he added, "the union of two banks at their best."

At the same time, he noted that the transaction is accompanied by "unprecedented" commitments to benefit customers in terms of credit volume. In some territories, such as Catalonia and the Balearic Islands, almost all credit is guaranteed to the client companies of one or the other, he stated. He also highlighted the projected increase in credit by more than 5 billion euros annually. Employees, for their part, will have new professional opportunities.

The transaction will generate significant future value for Banc Sabadell shareholders, who will obtain earnings per share (EPS) 25% higher than if the entity continued on its own. The savings from the transaction after three years will be €900 million, €50 million more than estimated almost a year and a half ago, which will materialize starting in 2029. Until then, the savings will be €175 million in 2027 and €235 million in 2028. The Spanish government's decision to prohibit the merger of both entities for at least three years, explained the BBVA chairman.