Spain’s second-largest lender, BBVA, has cleared the final regulatory hurdle in its attempt to acquire rival Banco de Sabadell, paving the way for the launch of its $17.4 billion takeover offer. With the green light now secured, BBVA will formally open the offer to Sabadell shareholders next week, giving them until October 7 to decide whether to accept.
This marks a major milestone in what has been one of Europe’s most closely watched banking deals. The acquisition, if successful, would create one of the eurozone’s largest financial institutions, significantly strengthening BBVA’s domestic position and expanding its footprint across Spain and beyond.
BBVA—officially Banco Bilbao Vizcaya Argentaria—first made its move in May 2024, opting for a hostile takeover after Sabadell’s management rejected earlier merger proposals. Despite resistance from Sabadell’s board, BBVA remained firm in its intent, taking the offer directly to shareholders in hopes of winning majority support.
The $17.4 billion all-share offer would give Sabadell investors a stake in the newly combined bank, positioning the merged entity as a more formidable competitor in the increasingly consolidated European banking landscape. BBVA has argued that the merger would deliver substantial synergies and cost savings, while also enhancing profitability and resilience amid evolving economic conditions.
Regulatory clearance was one of the last remaining barriers, with approvals already obtained from the European Central Bank and national financial watchdogs. The final approval now allows BBVA to formally present its offer to Sabadell shareholders, who will play a decisive role in determining the deal’s outcome.
If the acquisition goes through, it will mark one of the largest banking deals in recent Spanish history and a strategic move toward BBVA’s goal of long-term growth in core markets. It also reflects broader trends in the European financial sector, where banks are increasingly seeking scale to remain competitive amid rising costs, regulatory pressure, and digital disruption.
Sabadell has yet to issue a new statement in response to the opening of the offer window, though previous comments from its leadership have indicated a reluctance to pursue the deal under BBVA’s current terms.
The market will now watch closely as the deadline approaches, with shareholder sentiment and potential counteroffers likely to influence the final result.
