Spain’s BBVA Launches Bold €14.8B Takeover Bid for Rival Sabadell in Major Banking Shakeup

BBVA just dropped a €14.8 billion bombshell on the Spanish banking sector—going all-in for control of rival Sabadell.

Market Moves: Banking Titans Clash

This isn't just another merger—it's a strategic power grab. BBVA's pushing hard to consolidate market share, betting big that scale equals survival in today's economic climate.

The Price Tag: Billions on the Table

That €14.8 billion offer? Pure aggression. BBVA's clearly not playing for second place—they're aiming to dominate Spain's financial landscape outright.

Behind the Bid: More Than Just Money

This move reeks of old-school finance desperation—because who needs innovation when you can just buy your competition? Classic banking maneuver: acquire, don't adapt.

Wake-up call for traditional finance—consolidation might boost stock prices short-term, but it won't save legacy systems from the decentralized future already knocking.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

Sabadell and BBVA are two of Spain’s leading banks, both providing a full suite of financial services. Following the announcement, Sabadell shares ROSE 0.65% in Spain, while BBVA gained 0.54% at the time of writing.

Details of the Offer

Under the deal terms, BBVA is offering one newly issued share plus €0.70 in cash for every 5.5483 Sabadell shares. Based on current market prices, the offer values Sabadell at about €14.8 billion. Meanwhile, shareholders have until October 7 to tender their shares, with the results expected to be announced a week later, on October 14.

The bid was approved last week by Spain’s securities regulator, CNMV (National Securities Market Commission). Notably, it is drawing close attention not only from investors but also from the Spanish government, which has set conditions restricting how quickly BBVA can integrate Sabadell.

BBVA’s Deal Rationale

BBVA is pitching its takeover bid as a way to strengthen its position in Spain and expand further in Europe. The bank expects annual cost savings of nearly €900 million by 2029, up from an earlier estimate of €850 million. Additionally, its latest disclosures show a shift from €2.1 billion in badwill it once projected to €477 million in positive goodwill if it takes full control of Sabadell.

Back in May 2024, Sabadell rejected a €12 billion merger proposal from BBVA, arguing it undervalues the bank and ignores its standalone growth potential.

While BBVA could lower its acceptance threshold to 30% of voting rights, it has ruled out raising its bid, signaling a high-stakes push for scale. The final decision now rests with Sabadell’s shareholders, who face weighing BBVA’s long-term value pitch against near-term risks and government merger restrictions.

What Is the Target Price for BBVA Stock?

According to TipRanks, BBVA stock has a Strong Buy rating based on seven Buys assigned over the last three months. The BBVA’s share price forecast is €16.89, which is 7.65% above the current price level.