Bulletin: Spain-Based BBVA Offer To Buy Sabadell Could Create A Stronger National Champion But Entails Execution Risks

MILAN (S&P Global Ratings) May 13, 2024--S&P Global Ratings today said that Spain-based Banco Bilbao Vizcaya Argentaria S.A. (BBVA) presented a voluntary tender offer to the shareholders of Banco de Sabadell S.A. (Sabadell). If it were to proceed as presented, the tender would likely have a manageable effect on BBVA's (A/Stable/A-1) capitalization and overall creditworthiness. Additionally, if the deal were to go through, we would consider to what extent Sabadell's (BBB+/Positive/A-2) creditworthiness could benefit from the company belonging to a stronger financial group. On May 9, 2024, BBVA announced the board of directors' decision to launch the voluntary tender offer to Sabadell's shareholders to exchange one newly issued BBVA share for 4.83 Sabadell shares. This exchange ratio implies valuing Sabadell

...May 13, 2024 MILAN (S&P Global Ratings) May 13, 2024--S&P Global Ratings today said that Spain-based Banco Bilbao Vizcaya Argentaria S.A. (BBVA) presented a voluntary tender offer to the shareholders of Banco de Sabadell S.A. (Sabadell). If it were to proceed as presented, the tender would likely have a manageable effect on BBVA's (A/Stable/A-1) capitalization and overall creditworthiness. Additionally, if the deal were to go through, we would consider to what extent Sabadell's (###+/Positive/A-2) creditworthiness could benefit from the company belonging to a stronger financial group. On May 9, 2024, BBVA announced the board of directors' decision to launch the voluntary tender offer to Sabadell's shareholders to exchange one newly issued BBVA share for 4.83 Sabadell shares. This exchange ratio implies valuing Sabadell at about 12 billion, or a 30% premium over Sabadell's closing share price as of April 29, 2024. The terms of the voluntary tender offer are the same as to the previous proposal...

Bulletin