BBVA proposes merging with Banco Sabadell to create a
European leader
In a letter addressed to the Board of Directors of Banco Sabadell, BBVA states that
merging the two entities would create the most compelling industrial project in
European banking. In this sense, it highlights the benefits of the merger for both
entities, their shareholders, employees, clients and the communities in which they
operate.
Firstly, the new entity would create one of Europe’s largest and most robust financial
entities, boasting over one trillion euros in assets and serving more than 100 million clients
worldwide, with the ambition of becoming the largest bank by market capitalization of the
Eurozone.
The larger scale would allow the new entity to face the structural challenges of the sector in
better conditions and reach a greater number of clients, efficiently addressing investment
needs associated with digital transformation. The combined entity would be more solid and
efficient, and a benchmark in the market by volume of assets, loans and deposits.
On the other hand, BBVA highlights the strategic fit and complementarity of both
companies, with Banco Sabadell being the benchmark in Spain in the business segment
and, like BBVA, a leading entity in digitalization and sustainability. In addition, Banco
Sabadell's presence in the United Kingdom would add to BBVA's global scale and its
leadership in Mexico, Turkey and South America. For all these reasons, the merged entity
would be the best financial partner for families and companies, with a better product offering
and a greater global capacity to accompany companies in their international expansion.
Ultimately, the capacity of the new entity to provide credit to the real economy would be
amplified - with an estimated future impact of an additional 5 billion euros per year - as
such contributing significantly to the process of transformation, innovation and
decarbonization of the society. The creation of a stronger and more profitable entity
would further support the society in the form of greater contribution via taxes and
increasing and attractive shareholders’ distributions.
In this sense, BBVA also highlights its total commitment to Catalonia, a key market for
both entities. From a position of greater strength, the merged entity would bolster its
support for the business, cultural, scientific and social sector of Catalonia, through banking
activity and the respective foundations. In addition, the new bank would have double
operational headquarters in Spain, one of them in the Banco Sabadell’s corporate center in
Sant Cugat, and would reinforce Barcelona's role as a European hub for the most innovative
and disruptive companies in the world.
BBVA also shows its commitment to preserving the best talent and culture of both
entities, and proposes several key measures: i) Formation of an integration committee with
representatives of both organizations, in order to design the best integration process,
leveraging the talent of both entities; ii) Respect, in all cases, the principles of professional
competence and merit in the integration of the workforce, without the adoption of traumatic
measures that singularly affect employees of one of the two entities; iii) Configuration of the
management team of the merged entity with executives from both banks, once again based
on principles of professional competence and merit, seeking to maintain proportionality
based on the relative weight of the businesses; iv) Creation of an advisory council for Spain
that would have institutional and commercial relevance and would include current directors
and executives of both entities.