...June 18, 2020 MADRID (S&P Global Ratings) June 18, 2020--On June 16, Abanca announced that negotiations to buy Portugal-based Eurobic have ceased. It had initially launched a binding offer in February, subject to a due diligence process. The deal had been expected to close soon but we understand that, because of COVID-19 developments, Abanca and Eurobic's main shareholders were unable to reach an agreement. Abanca has, however, reiterated its interest in expanding into Portugal and Eurobic seems to be a good fit for its ambitions. Meanwhile, Eurobic's main shareholder Angola-based Isabel dos Santos (42.5%) has legally been revoked from exercising her voting rights and has announced her willingness to sell her stake. Therefore, at this stage we feel it is too early to assess whether the deal will definitely fall apart. We will therefore continue to monitor any new developments and update our views accordingly. If Abanca did finally not pursue the acquisition of Eurobic, its capitalization...
