BBVA and Sabadell banks in merger talks

BBVA and Sabadell banks in merger talks to become the second biggest financial institution in Spain

Spanish bank BBVA has confirmed that it is in talks with the smaller Banco Sabadell, which also owns TBS in the UK, regarding a potential merger that would create a global financial institution worth €860billion.

BBVA announced on Monday, November 16 that it has agreed to sell PNC, its subsidiary in the US, for $11.6 billion (€9.7 billion). Currently, Sabadell has a market capitalisation of €2.3billion compared with BBVA’s €24.5billion.

The Spanish banking sector is now going through three simultaneous mergers. The first one is the tie-up deal for €4.3 billion announced in September by CaixaBank and Bankia, which will create Spain’s largest financial institution. But it is not just the giant lenders who are joining forces: the smaller Unicaja and Liberbank are in talks as well.

If the merger between BBVA and Sabadell proceeds, the resulting entity will be the second largest financial institution in the country.

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