Link Securities | The CEO of BBVA (BBVA), Onur Genç, said that the merger between the bank and Banco Sabadell (SAB) ‘is a textbook operation, ideal for everyone’, according to the Bolsamanía portal. Genç explained that the strong correlation between the share prices of the two banks reflects that the offer is solid and supports the value of Sabadell. He said this during his participation in the 15th Financial Forum organised by the newspaper Expansión and KPMG. In it, he said that a stronger and more efficient bank will be created, with a greater capacity to grant credit.
In fact, Genç affirmed that the union between BBVA and SAB will be beneficial for Spain and its economy, highlighting in particular its firm commitment to SMEs. In that sense, far from reducing the supply of credit to small and medium-sized enterprises, this transaction seeks to increase it. ‘We are doing this operation to grow credit, especially to SMEs,’ he said.
In relation to this same issue, Expansión reported that Onur Genç has stressed that BBVA is ‘open to talk’ with the government. ‘We are aware of the concerns that have arisen and we are sensitive to these concerns. We are willing to talk to the government, as we have done on other occasions,’ he said. Regarding the verdict of the National Markets and Competition Commission (CNMC), Genç assured that they have been in constant dialogue with the CNMC since they submitted the documentation on 31 May. ‘They are doing a very detailed job, and we respect that. They are very rigorous,’ he added.
Genç also stressed his conviction that the CNMC will approve the analysis in the first phase for the transactions preceding BBVA’s deal with SAB. ‘Our conviction is that it is not a competition problem, and we think it will come out in phase one,’ he said. The executive underpins his view with the methodology that the CNMC applied to the CaixaBank-Bankia and Unicaja-Liberbank transaction.
Later, at the same forum, César González-Bueno, CEO of SAB, expressed his conviction that the hostile takeover bid launched by BBVA will not go ahead because it does not meet the three necessary conditions: attractive price, friendly purchase agreement and social and political backing. ‘This operation is very complicated. It makes no sense,’ he said.
González-Bueno also believes that the valuation offered by BBVA to SAB’s 200,000 shareholders is insufficient. ‘The premium is only 3%. When the takeover bid was launched, it was said that BBVA was offering 30% above the share price of the last three months. But SAB was trading very cheaply,’ he said.
The SAB executive assured that it is false that the bank’s rise on the stock market is conditioned by the takeover bid. ‘I deny that. SAB was up 60% since January before the operation was leaked,’ he said. The Catalan bank is trying to dissuade shareholders from the takeover bid through its dividend offer, which has been improving over the course of the deal.
SAB has committed to distribute €2.9 billion to investors in 2024 and 2025 in cash payments and capital repayments. ‘In 18 months our shareholders will earn a return of 30%. This is unparalleled,’ he said. In addition, González-Bueno said that this amount could be revised upwards because SAB’s capacity to generate profits will continue to rise, also in 2025, despite lower interest rates.
