Finance
BBVA revising synergy estimates, still sees value in proposed Sabadell deal
Published by Global Banking & Finance Review®
Posted on August 7, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 7, 2025
2 min readLast updated: January 22, 2026
BBVA revises synergy estimates for its Sabadell acquisition due to new government conditions and Sabadell's TSB sale.
MADRID (Reuters) -Spain's BBVA said on Thursday it was revising expected cost and funding synergies from its takeover bid for Sabadell, citing higher risks after the government imposed conditions and Sabadell greenlit an important divestment.
However, BBVA said it still believed the takeover would "create value for the shareholders of both entities".
Its update, filed with stock market regulator CNMV, came a day after Sabadell shareholders approved the sale of its British unit TSB to Santander, along with a 2.5 billion euro ($2.9 billion) one-off cash payout derived from the deal.
BBVA warned that the government's requirement to keep the two lenders operationally independent for at least three years - extendable to five - would delay some of the benefits of the planned merger.
Previously BBVA signalled that if it kept Sabadell separate it would still be able to generate most of the expected 850 million euros in cost synergies over two years after completing the deal. But Thursday's filing did not include this figure, which it said is being reassessed.
The lender added it only had access to public information on Sabadell when making its estimates, which could lead to unforeseen liabilities or integration challenges if the deal were to proceed.
Some potential difficulties included the integration of staff, systems and operations, as well as risks of litigation and client attrition.
In addition, BBVA said delays or failure to complete the merger could hurt its share price, reputation and relationships with key stakeholders.
($1 = 0.8593 euros)
(Reporting by David Latona; Editing by Andrei Khalip and David Holmes)
BBVA announced it was revising its expected cost and funding synergies from its takeover bid for Sabadell due to higher risks.
The government required that BBVA and Sabadell remain operationally independent for at least three years, extendable to five.
BBVA identified integration of staff, systems, operations, and risks of litigation and client attrition as potential difficulties.
Delays or failure to complete the merger could negatively impact BBVA's share price, reputation, and relationships with key stakeholders.
Sabadell shareholders approved the sale of its British unit TSB to Santander, which is part of the broader context of BBVA's takeover bid.
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