Sabadell Claims Its Independent Strategy Increases Brand Value
14:39 04/10/2024 - PesoMXN.com
The global president of Sabadell, Josep Oliu, held a meeting with shareholders where he asserted that the bank has profitability projections for the next two years, arguing that a mandatory takeover bid from BBVA underestimates its true potential. During the same meeting, CEO César González-Bueno mentioned that the bank plans to invest 2.9 billion euros between 2024 and 2025, and that profit expectations have been revised upward.
Oliu anticipates that profitability will rise above 13.1%, the figure with which it closed the first half of this year and that he expects to maintain through 2025. “Since 2021, our strategy has transformed the bank and its results. We are reaching record profits and have a strong capital position,” González-Bueno stated. Regarding the process of the public takeover bid (OPA) from BBVA, it is expected to be lengthy and will not conclude before mid-2025; in the meantime, Sabadell expects a period of uncertainty while awaiting a response from regulatory authorities in Spain. “BBVA needs to clarify certain data and impacts, as well as present different possible scenarios in terms of costs and synergies in case the merger does not go through,” Sabadell pointed out. This marks the second time BBVA has attempted to acquire Sabadell in Spain, but after an initial failure in negotiations, it has decided to make a mandatory offer.
Sabadell’s stance reveals an important trend in the banking world: mergers and acquisitions do not always benefit the entities involved. It is essential for financial institutions to maintain a clear and strategic focus on their long-term value and growth potential. A company’s ability to adapt and thrive independently can be a decisive factor in its success, depending on its projections and market conditions.
