BBVA Raises Sabadell Offer 10% After Board Rejects First Bid

BBVA has raised its takeover offer for Banco Sabadell by 10% to €17 billion (MX$367 billion), aiming to create Spain’s second-largest bank by assets.

The revised proposal follows Sabadell’s board advising shareholders earlier this month to reject the initial bid, arguing it undervalued the bank.

Under the new terms, Sabadell shareholders would receive one BBVA share for every 4.8376 Sabadell shares. The previous offer included one BBVA share for every 5.5483 Sabadell shares plus €0.70 in cash. BBVA said compensation will now be entirely in shares, meaning shareholders with capital gains would not face taxation in Spain if acceptance exceeds 50% of Sabadell’s voting rights.

The bank added that it will not improve the offer further or extend the acceptance period beyond Oct. 7. Results of the 16-month takeover attempt are expected on Oct. 14.

Mexican investor David Martínez, who holds 3.86% of Sabadell through Fintech Europe, had previously called the earlier offer strategically sound but undervalued.

The acceptance period for the improved proposal remains suspended until Spain’s securities regulator, the Comisión Nacional del Mercado de Valores (CNMV), approves the revised terms. BBVA confirmed that Sabadell shareholders who have already tendered shares since the offer opened on Sept. 8 will benefit from the updated conditions.

If successful, the acquisition would be Spain’s second-largest banking deal by assets.