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Spain’s BBVA Boosts Offer in High-Stakes Bid for Banco Sabadell

By  |  September 22, 2025

BBVA SA has raised its bid for Banco Sabadell SA, lifting the value of its takeover attempt to about €17 billion ($20 billion) after months of holding firm on an earlier offer, according to Bloomberg. The move increases the proposed price by 10%, representing a modest premium to Sabadell’s recent market valuation.

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    The Spanish lender, led by Chairman Carlos Torres, is seeking to avoid a repeat of his unsuccessful approach to Sabadell five years ago. The new proposal comes just ahead of a key September 23 deadline and follows a prolonged standoff since BBVA’s initial offer in May of last year. During that time, Sabadell resisted by selling its UK business in an attempt to block the merger, per Bloomberg.

    Despite the improved bid, Sabadell’s leadership remained resistant. Chief Executive Officer Cesar Gonzalez-Bueno told Spanish radio the revised proposal was still “bad” and urged investors not to accept it. Analysts, however, suggested the increase may be enough to persuade shareholders. RBC’s Benjamin Toms noted that the revised terms are “fair and not totally unexpected,” which could sway many investors.

    Related: EU Challenges Spain Over BBVA-Sabadell Deal Restrictions

    Under the new structure, BBVA is offering one of its shares for every 4.8376 shares of Sabadell, while also adjusting the terms to make the deal more favorable from a tax perspective. Bloomberg reported that BBVA has ruled out further extensions or another increase.

    The announcement triggered mixed reactions in the markets. Shares of Sabadell dropped more than 4% while BBVA’s stock slid 2.6%, signaling that investors may see little room for further improvements. Nicolas Marmurek of Square Global observed that the small premium could prompt hedge funds involved in merger arbitrage to unwind their positions, leaving open the question of whether BBVA will secure enough shareholder support.

    Behind the scenes, Torres has embarked on an intense charm offensive. At a London investor conference, he rushed between private meetings and group sessions, while in Spain the bank ramped up outreach efforts in Catalonia, Sabadell’s home region. Bloomberg noted that BBVA even began issuing press releases in Catalan to appeal directly to local shareholders.

    Source: Bloomberg