Spanish banks have come under increasing pressure to consolidate to cope with ultralow interest rates in the eurozone and rising bad debts as they look to weather the impact of the COVID-19 pandemic. That has forced them to focus further on cost cuts, including through mergers.Įuropean banks face over €400 billion ($475 billion) of credit losses in the next three years, consulting firm Oliver Wyman said in a report published in July, adding that this figure could double to €800 billion in the case of a second comprehensive lockdown. Which are down more than 58% so far this year, rose 1.15%. Shares in BBVA dropped 5.54%, while shares in Sabadell If the deal goes ahead, it would create a bank with almost €600 billion in assets in Spain, with a combined market value of €26.8 billion based on Monday’s closing share prices of the two banks. It also noted that no decision has been made in relation to the potential merger and that there is no certainty as to whether any such decision will be made or what the terms and conditions of a potential deal are. “The entities have initiated a reciprocal due diligence review process as is customary in this type of transactions and have appointed external advisers,” BBVA said in a stock exchange filing. Said the talks were ongoing and no decision had been made on whether a transaction would go ahead. Unit in One of the Biggest Bank Deals Since the Financial Crisis Read: PNC Will Pay $11.6 Billion for BBVA’s U.S.
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