THE merger between two of Spain’s largest banks BBVA and Banco Sabadell has ground to a halt as disagreements have emerged over buyout prices.
According to Spain’s El Economista, talks have fallen apart thanks to the price that BBVA is willing to pay for it’s smaller rival.
According to Spanish press, BBVA would be willing to pay for the takeover in cash as stipulated by Sabdell, but would not we willing to go above the initial offer of €2.5 billion.
It has also been reported that there have been disagreements over the future leadership of the new banking entity.
Since the news of the collapse, Sabadell’s stocks have plummeted dramatically, however BBVA’s have held firm, peaking at a total value of €25.14 billion.
According to Sabadell chairman Carlos Torres, the bank will now refocus and concentrate on growing TSB Bank’s presence in Spain.
“We will analyse with our advisers, strategic alternatives for creating value with respect to the group’s international assets, including TSB,” said Torres in a statement.
Sabadell took over ownership of TSB in June 2015 for a total of €1.7 billion.