Santander Recommends Buying BBVA Shares
Analysts and investment banks applauded on Tuesday the potential merger of BBVA and Sabadell as a way for both groups to improve their profitability levels and consolidate their capacity to face the coronavirus crisis. And one of the entities that has most flattered the integration was, with curiosity, Banco Santander, a group that loses positions in the national banking ranking and would be located by volume of assets at a great distance from the two large national superbanks in procedure
There are many ways to do this comparison, but the most common is by asset volume. In this case, the creation of a new ‘superbank’ after the potential merger between BBVA and Sabadell further reduces the number of entities operating in the Spanish market. It is the third integration project that has been launched in the last two months, but the analysts and investors consulted are betting that it will not be the last.There are many ways to make this comparison, but the most common is by volume of assets . In this case, the company has confirmed that it maintains dialogues with representatives of Banco Sabadell for a potential merger between the two entities, as confirmed to the National Securities Market Commission. As is frequent in this type of operation, the bank has also reported that it has also been reported that a mutual review procedure has already begun, and external consultants are nominated. BBVA In any case, it stated: “No determination is made on the potential operation and that” there is no certainty that it will be adopted, nor, in that case, on the terms and conditions “of the operation.” BBVA hired JP Morgan to negotiate the acquisition of Sabadell, whose interlocutor is Goldman Sachs, as anticipated by ‘El Confidencial’. The newspaper also cites that BBVA hired Garrigues as legal advisor, while Sabadell counted on Uria Menendez for this, and that companies are also hired that are going to do the ’due diligence’ for the acquisition. BBVA announced on Monday the sale of its subsidiary in the United States to PNC for a value of approximately 11,600 million dollars in cash, which will generate a net capital gain of about 580 million euros and tangible wealth will increase by 1,400 millions of euros. The president of the entity, Carlos Torres, and Onur Genç then communicated the intention of carrying out a “significant” share buyback with the excess capital derived from the sale of its subsidiary in the United States, at the same time that they did not rule out establishing a party to undertake a probable consolidation operation. Onur Genç is its CEO. The market reacted by discounting that it would be Banco Sabadell who would participate in the hypothetical consolidation operation of BBVA and the shares of the bank chaired by Josep Oliu soared 24.59% on the Stock Market this Monday, to 0.419 euros. BBVA shares also experienced a strong rise of 15.25%, to 3.658 euros.
An analyst is a type of Romanian history writer whose literary activity time has been from the Second Punic War to the time of Sulla.
Banco Santander, commercially known as Santander, is a bank in Spain chaired by Ana Patricia Botin, daughter and granddaughter of the previous presidents, Emilio Botin and Emilio Botin-Sanz de Sautuolay Lopez, respectively.
Santander Recommends Buying BBVA Shares - /10