BarcelonaThe financial intrigue series has ended. After a battle that lasted almost a year and a half, there will be no third season. Only 25.47% of Banco Sabadell's share capital participated in BBVA's hostile takeover bid, according to a statement from the National Securities Market Commission (CNMV). This means that the Basque bank's offer has been derailed after falling short of the 30% mark, which was the minimum the bank chaired by Carlos Torres needed if it wanted to gain control of Sabadell. This is the second time Torres has tried to integrate the Catalan bank into BBVA's structure and failed. The hostile takeover bid enjoyed a rare unanimous opposition, which has included the Catalan government, large and small employers' associations, unions, small investors, and public opinion. In fact, the President of the Generalitat (Catalan government), Salvador Illa, has salvaged an undesirable situation, one for which he had counted on the support of the Spanish government, with the conditions imposed on the operation by the Minister of Economy.
While there was a clear logic to BBVA's growth, synergies, and reduced exposure in Mexico and Turkey, it was difficult to see the benefits for the economy and the company in Catalonia, where it was losing banking opportunities and a key part of the financial system. Sabadell, led by Chairman Josep Oliu and CEO César González-Bueno, had repeatedly described the offer as insufficient, and that is how shareholders ended up seeing it, who did not give the Basque bank another chance, probably due to the inadequacy of the final price offered and the uncertainties surrounding a second 50% stake.
The failure of the hostile takeover bid leaves BBVA chairman Carlos Torres in an awkward position, despite having repeatedly stated that the bank is "much more than the takeover bid" and having disassociated his continued presence from the success of the operation. In fact, his first reaction was to focus on shareholder remuneration, with the payment of a record dividend on November 7. Torres played hardball and lost.
In these months of public battle, at times at the limits of what the regulator could tolerate, Banc Sabadell has returned its headquarters to Catalonia in a clear gesture to strengthen the bank's Vallesana roots. The fact that its headquarters are in Catalonia and that Banc Sabadell survives is good news. Now we'll have to see what the future strategy will be to grow its volume and solidity, and how the markets will react to a transaction that seemed difficult to see as making sense from the perspective of Catalan society and the economy. Sabadell is now independent, but it still faces challenges in a European market that lacks banking integration and volume. For the self-employed and entrepreneurs, having a broad and competitive offering is also good news. Politically, the successful bid would have been interpreted as a weakness for the country.
