After the announcement of the second attempt to purchase BBVA from Banco Sabadell, this has had rapid repercussions on the stock markets, reaching 3.6% on the stock market on Friday, managing to close at 1.88 euros and even touching 10 % going up.
Therefore, with the rise in the premium that BBVA initially offered for its shares, this margin narrowed from an initial 30% to 17% last Friday. In 2024, Sabadell will reach 10,000 million euros, increasing its value in just two days by 843 million euros, while BBVA has fallen by more than 10.2% on the stock market since Monday. In two days its market capitalization exceeds losses of more than 5.6 billion euros. Will Banc Sabadell be able to reach its 150th birthday without being bought out? It is clear that with this commotion Banc Sabadell is worth more, and it is fair to recognize that it is good for shareholders and for both banks. But is this what Spain and Europe need and want, given their new economic policies, despite the freedom of the markets? Do we need more oligopolies in banking? Is it the right way for banking to face the new times? Is this the policy that Spain wants to reduce employment and increase oligopolies? Does anyone believe that in two years we will not see forced layoffs and early retirements?
If we analyze the market share, it could cause serious damage to Spain and Europe as well as to international investors, who will see a Spain with a reduction of important banks, with a scenario in which BBVA, CaixaBank, Santander, Unicaja and Bankinter. Without going any further, if the purchase occurs, in the Valencian Community two large entities will control just over 60% of the market, and in Catalonia two large banks would also control 90% of the market. If we analyze BBVA, today a strong bank, but with a global balance to take into account a certain risk in two countries that are at least volatile and that are outside the Monetary Union, Mexico and Turkey, it gives rise to many analyses. More than 50% of BBVA's profits come from Mexico, and in Turkey BBVA is the owner of the number one bank par excellence, although the country is questioned for its dubious legal security and democratic health.
The voice of the customers has not been long in coming. In the shareholder and customer service department, calls this week overwhelmed the telephone switchboards. According to internal sources, the fact of an offer of a 30% bonus was considered disastrous by some, unfair by others, and the discomfort on the phone was served. These shareholders and clients alleged that the bank's trajectory together with the inertia of this year was an unfair offer. This caught our attention and we reviewed the presentation of results for 2023 and those for the first quarter of 2024. This explains the concern that arose, since offering it as an exchange of shares is seen as a high-risk operation not only by the countries in which which BBVA is but also for the profitability of BBVA's banking business in Spain.
