Spain’s BBVA has officially abandoned its €16.32 billion hostile takeover of Banco Sabadell after failing to win sufficient support from shareholders, marking the end of an 18-month-long battle that became one of the country’s most divisive corporate sagas in recent years.
The setback is a significant blow to BBVA Chair Carlos Torres, who spearheaded the effort to merge the two lenders and create one of Europe’s largest banking groups. Despite the failure, Torres dismissed speculation about his resignation, saying the bank would “look to the future with confidence and enthusiasm.”
Data from Spain’s market regulator showed that only 25.47% of Sabadell shareholders accepted BBVA’s offer — well below the 50% threshold needed for success, and even short of the 30% minimum level that could have allowed the bank to move forward had it decided to waive control conditions. Analysts had expected an acceptance rate of between 30% and 50%, making the outcome an unexpected disappointment for BBVA.
The collapse marks the second failed merger attempt between BBVA and Sabadell in less than five years. Shares of BBVA rose around 7% in U.S. trading following the announcement, as investors viewed the end of the costly takeover pursuit as a relief.
BBVA first approached Sabadell in April 2024 with a friendly offer that quickly turned hostile a month later after Sabadell’s board rejected the proposal. The move sparked strong political opposition, with the Spanish government warning of potential job losses and market concentration. Regulators launched a lengthy competition review and ultimately imposed conditions preventing BBVA from fully merging with Sabadell for at least three years.
The proposed merger would have created one of Europe’s biggest lenders, with assets of about €1 trillion, allowing BBVA to strengthen its position in Spain after years of expanding into Latin America and Turkey. European banking authorities have repeatedly called for greater consolidation across the eurozone to bolster competitiveness, but national governments have often resisted such deals over employment concerns.
In a statement following the failed bid, BBVA said its board “unanimously reasserted its commitment” to the bank’s standalone growth strategy. The lender plans to press ahead with its four-year plan announced in July, which targets €48 billion in cumulative profits and €36 billion in shareholder distributions by 2028, without relying on a merger with Sabadell.
As part of its next steps, BBVA confirmed it will resume shareholder remuneration from October 31, including a €1 billion share buyback. The bank also plans to issue a record interim dividend of €0.32 per share in November and has pledged a further share buyback program once it receives authorisation from the European Central Bank.
