The hostile takeover bid (OPA) for 100% of the shares of Banco Sabadell launched this Thursday by BBVA would endanger offices in up to 43 Galician municipalities, where both banks have branches. Specifically, according to data from the Bank of Spain compiled by Europa Press, in Galicia there are 116 branches of the bank of Basque origin, as well as 64 of the Catalan company. In total, between both entities there are up to 180 offices in the Community.
In this way, BBVA is present in 73 Galician towns, while Banco Sabadell in 45 municipalities throughout Galicia, especially in the provinces of A Coruña and Pontevedra. Of this total, up to 43 councils in the Community have both brancheswhich, if this purchase were to finally take place, could mean the closure of some of the offices.
The Association of Users of Cajas y Seguros Banks (Adicae) has warned precisely about this issue, which has regretted that a possible merger could imply “strong harm” to consumers, “which could see their conditions altered and the supply of their services reduced.” For this reason, the organization has said it is “alert”, criticizing that the current banking “monopoly” “holds back the remuneration of savings” due to the “lack” of competition.
Nevertheless, The market share (in terms of offices) of the entity resulting from the operation would not exceed 50% in any of the Galician locations., given the weight that other banks have in the Community. However, it would reach a third of the existing offices in several municipalities such as Ames (A Coruña), Bayonne (Pontevedra), Betanzos (A Coruña), O Carballiño (Ourense); Girl (A Coruña); Pontareas (Pontevedra); Sarria (Lugo); Tui (Pontevedra); Vilalba (Lugo) or Nursery (Lugo).
Besides, In some cases the sum of both entities would reach or exceed 40% of the available bank branches, as would happen in O Barco de Valdeorras (Ourense); in Becerreá (Lugo), where it would reach 50% of the four offices that exist in the municipality; in Burela (Lugo); in Cambre (A Coruña); in Cedeira (A Coruña); in A Estrada (Pontevedra); in Foz (Lugo); in The Grove (Pontevedra); in Marín (Pontevedra); in Walls (A Coruña); in Ordes (A Coruña); in Ponteceso (A Coruña), or in As Pontes de García Rodríguez (A Coruña).
Neverthelessthe 180 offices that both banks have in Galicia represent 17.7% of the total of the 1,016 bank branches that exist in the Community.
About, Vigo is the Galician city with the most bank offices, up to 113 available, of which 12 are from BBVA and seven from Banco Sabadell. Coruña follows closely with 109 branches, 13 from BBVA and seven from Sabadell. It is worth remembering that in 2013 Banco Sabadell acquired Banco Gallego from the Fund for Orderly Banking Restructuring, integrating its offices into a single entity, which currently allows it to have more than 60 locations in the Community.
BBVA offer
All this after the BBVA board of directors decided this Thursday formulate a hostile takeover bid for 100% of Banco Sabadell shares after this entity rejected a friendly proposalin which it offers a consideration of one new share for every 4.83 of the Sabadell, as reported by the entity to the National Securities Market Commission (CNMV).
The equivalent price of the cash consideration is 2.12 euros per share of the entity of Catalan origin. The BBVA board also agreed to call its general meeting of shareholders to decide on the issuance of new shares in the amount necessary to fully cover the exchange.
The acquisition by BBVA of control of Sabadell is subject to the duty of prior notification to the Bank of Spain and to the Obtaining non-opposition from the European Central Bank. Last week, BBVA announced its intention to acquire Banco Sabadell in a friendly manner. Offer that was rejected by the Catalan company this past Monday. So now BBVA is trying again through a hostile takeover bid.
