French financial giant BPCE has acquired 7% of the outstanding shares of its Spanish peer Sabadell and has decided to become a long-term shareholder. The two companies announced the move on the 6th. Calculated at current market prices, the stake is worth about 1.2 billion euros. Last year, domestic rival BBVA launched a hostile bid for Sabadell, but the takeover did not go through. Analysts note that BPCE's share purchase this time has the effect of shielding Sabadell from a future hostile takeover. On the 6th, BPCE and Sabadell said they will explore the possibility of cooperation mainly in corporate and investment banking and consumer lending, and said they expect to wrap up talks by early 2027.
Banco Bilbao Viscaya Argentaria SA ADRBPCE's 7% stake in Sabadell shields it from BBVA's hostile bid, undermining BBVA's takeover ambitions.
BPCE acquires a 7% stake in Sabadell worth about 1.2 billion euros and becomes a long-term shareholder.
