BBVA plans to acquire Banco Sabadell, offering significant shareholder premiums and aiming to enhance its competitive position in the banking sector.

Information on the Target

BBVA, a major financial institution in Spain, is committed to enhancing shareholder value through significant financial distributions projected to exceed €5 billion based on 2024 earnings, which reflects a 50 percent payout ratio. This distribution includes a cash dividend of €0.70 per share and a forthcoming €993 million share buyback program. BBVA's Chair, Carlos Torres Vila, expressed confidence in their strategy, stating it has proven remarkably effective, with expectations that it will continue to deliver value in the future.

Since 2021, BBVA has returned €18 billion to its shareholders, through a combination of dividends and share buybacks. The return on investment for BBVA shareholders has notably increased, tripling over the past five years. Specifically, the total shareholder return from January 2019 to January 29, 2025, reached 235 percent, significantly outperforming both the Stoxx Europe 600 Banks index and other Spanish banking peers.

Industry Overview in Spain

The Spanish banking sector is currently experiencing a wave of consolidation, driven largely by the need for financial institutions to scale up to remain competitive in a global context. This has become critical as the European banking landscape must adapt to com