Latest news with #CarlosTorresVila
Reuters
02-07-2025
- Business
- Reuters
Breakingviews - BBVA leaps into $16 bln hostile M&A high-wire act
LONDON, July 1 (Reuters Breakingviews) - No one can accuse Carlos Torres Vila of lacking tenacity. The chair of 74-billion-euro BBVA said, opens new tab late on Monday that he was continuing with his bid for Spanish rival Banco de Sabadell ( opens new tab, first launched in April 2024, despite punitive conditions, opens new tab recently laid down by the government. Success will require raising the offer enough to please the target's investors without overly irking Torres's own shareholders. Sabadell's possible sale of UK arm TSB adds another complication. Spain's Economy Minister Carlos Cuerpo last Tuesday said BBVA ( opens new tab could only buy the smaller Spanish lender if it keeps the target as a separate legal entity with autonomous management for at least three years. The upshot is that Torres's 300 million euros of planned savings from staff cuts are delayed. That still leaves some 550 million euros of synergies from cutting technology and administrative expenses and cheaper debt funding. It's not necessarily a disaster for Torres. His bid currently values Sabadell at 13.7 billion euros. Add upfront restructuring charges equivalent to twice the annual overhead savings, apply a 29% tax rate, and the total effective outlay is 14.3 billion euros. In return, BBVA will get 1.9 billion euros of earnings from Sabadell by 2028, using Visible Alpha consensus data, which rises to 2.3 billion euros after including all post-tax synergies other than the job cuts. Divide that figure by the total outlay and the implied return is a healthy 16%. The problem is that the current terms are meagre from the perspective of shareholders in Sabadell, which is trading 7% above the live value of BBVA's offer. Local peers CaixaBank ( opens new tab, Unicaja ( opens new tab and Bankinter ( opens new tab are up 53% on average since Torres first pounced. That rise effectively eliminates the premium BBVA initially touted, meaning it will almost certainly have to raise the price. Bumping by 10% would reduce Torres's 16% three-year return on investment down to about 14%, according to Breakingviews calculations. That's not a terrible payoff, given European banks are currently generating a return on tangible equity of around 14%, according to UBS analysts. Still, BBVA shareholders might want more from a risky takeover. And it doesn't give Torres much of a margin of safety. The more BBVA raises its offer, the more its own stock may suffer, which would in turn reduce the value of the mostly share-based offer. The final curveball is TSB, Sabadell's UK unit, which may be on the block and has enticed a handsome bid of more than 2.3 billion pounds (2.7 billion euros) from Spain's Banco Santander ( opens new tab, Reuters reported on Monday. A sale arguably strengthens the target's standalone story, which is premised on returning fistfuls of cash to investors, making its shareholders less likely to sell to BBVA except at a high price. In other words, Torres is far from home and dry. Follow Liam Proud on Bluesky, opens new tab and LinkedIn, opens new tab.
Yahoo
02-07-2025
- Business
- Yahoo
BBVA to pursue Sabadell takeover despite Spain's restrictions
BBVA has revealed plan to proceed with its takeover bid for Sabadell, despite government restrictions preventing a full merger for at least three years. This was one of the conditions imposed by the Spanish government for the hostile takeover proposal, with the possibility of extending these restrictions for a further two years after the initial period. BBVA Chair Carlos Torres Vila said: 'The project creates significant value for the shareholders of both entities and represents a unique opportunity to build one the most competitive and innovative banks in Europe. 'Together we will be a stronger institution, with greater scale and the capacity to increase lending to households and business by €5 billion annually, thereby supporting the economic growth of our country.' Meanwhile, Santander has submitted a binding offer for Sabadell's UK unit, TSB, according to sources cited by Reuters. The offer reportedly values TSB at more than £2.3bn ($3.15bn). Barclays had also submitted a bid for TSB, as noted by La Vanguardia. The news agency further noted that, Sabadell is reportedly considering holding a board meeting as early as today to evaluate the bids and decide whether to proceed with a sale, and if so, which offer to accept. The potential sale of TSB comes as Sabadell seeks to fend off BBVA's takeover attempt, the Reuters report said. Last month, Sabadell confirmed it had received unsolicited interest in TSB, with Santander and Barclays reached final race. An earlier report from Bloomberg highlighted that a TSB sale could limit BBVA's access to a key asset in its acquisition strategy. "BBVA to pursue Sabadell takeover despite Spain's restrictions " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
27-05-2025
- Business
- Reuters
BBVA to invest $5.2 billion in Mexico through 2030
MEXICO CITY, May 27 (Reuters) - Spanish bank BBVA ( opens new tab plans to invest more than 100 billion pesos ($5.19 billion) in Mexico through 2030, it said in a statement on Tuesday. The investment is part of BBVA's long-term bet on the Latin American nation, the firm added. "The 100 billion pesos that we are announcing is not only an investment," BBVA chair Carlos Torres Vila said in the announcement. "It's a commitment to the more than 30 million customers we serve in the country." BBVA added that it was looking to further strengthen its corporate banking presence in the nation and boost customer service. ($1 = 19.2575 Mexican pesos)
Yahoo
27-05-2025
- Business
- Yahoo
BBVA to invest $5.2 billion in Mexico through 2030
MEXICO CITY (Reuters) -Spanish bank BBVA plans to invest more than 100 billion pesos ($5.19 billion) in Mexico through 2030, it said in a statement on Tuesday. The investment is part of BBVA's long-term bet on the Latin American nation, the firm added. "The 100 billion pesos that we are announcing is not only an investment," BBVA chair Carlos Torres Vila said in the announcement. "It's a commitment to the more than 30 million customers we serve in the country." BBVA added that it was looking to further strengthen its corporate banking presence in the nation and boost customer service. ($1 = 19.2575 Mexican pesos) Sign in to access your portfolio
CNBC
01-05-2025
- Business
- CNBC
Spain's antitrust body clears BBVA-Sabadell takeover, awaits government
Spain's competition watchdog CNMC approved on Wednesday the proposed acquisition of Banco Sabadell by its larger rival BBVA, though the combined lender will have to accept several remedies in its retail banking arm if the long-running hostile takeover bid clears the remaining hurdles. The deal, valued at around 12 billion euros ($13.59 billion) when it turned hostile last May, is opposed by the Spanish government. An economy ministry spokesperson said it would pore over the CNMC report once it has received it. The deal also has to be authorized by the stock market supervisor CNMV before the bid can be effectively launched. BBVA wants to create the second-biggest bank in Spain by credit volume after Caixabank, which would also have over 1 trillion euros ($1.13 trillion) in total assets. The CNMC said the commitments presented by BBVA to address competition issues in the affected markets were "adequate, sufficient and proportionate." In a statement, BBVA Chair Carlos Torres Vila said that the remedies that "we assume favor financial inclusion, territorial cohesion, credit for SMEs and the self-employed, and preserve competitiveness, especially in places where Banco Sabadell has a greater presence, such as Catalonia." Sabadell countered that the methodology used by the CNMC was not "appropriate" to analyze the implications that the combination of both banks would have on SMEs and clients. The CNMC also concluded that the deal posed a threat to effective competition in certain areas of the retail banking and payment services market, where the merged entity exceeds a 30% combined market share. BBVA committed to divest certain levels of stakes in payment processing companies (Redsys, Sistema de Tarjetas y Medios de Pago, Bizum and Servired) as mandated by these companies' bylaws. To address concerns, BBVA said it would not close branches where there is no other branch within 300 meters (0.19 miles), in postal codes with a per capita income below 10,000 euros and where there are fewer than three competitors. It also vowed not to leave behind any municipality in which there are fewer than three competitors. As for SMEs and the self-employed, BBVA also committed to maintain working capital lines for three years, extendable by two more years, for all SMEs working with Sabadell. Under Spanish law, the government cannot stop a bid from being made, but it has the final word on whether a merger goes ahead. Competition legislation limits the government's scope for intervention but since the antitrust regulator has set remedies in its review, Spain's economy ministry has now 15 business days to take the deal to a cabinet meeting. The government then has a month to oppose it, known unofficially as a "phase 3 review."
