Spains Sabadell bank rejects merger offer from BBVA after being significantly undervalued by its rival [Video]

A PROPOSED merger between Banco Sabadell and the BBVA has been rejected by the Sabadell board on the grounds that it ‘significantly undervalues’ the bank and its growth prospects.

In a statement, the Sabadell board said that it has full confidence in its growth strategy and its financial objectives, and is of the view that remaining independent will generate more money for its shareholders.”

News of the merger proposal became public last week and would have expanded BBVA’s position as Spain’s second largest bank behind Santander and increasing its lead over CaixaBank.

READ MORE:

• BBVA and Sabadell banks to discuss huge potential merger in Spain
• EXPLAINED: What Caixabank merger with Bankia means for customers
• Banking giants BBVA and Sabadell launch formal merger talks in Spain

In terms of assets, Banco Sabadell is the fourth largest in the country.

Experts don’t rule out BBVA coming back with an improved offer but more likely believe they will turn their eyes to smaller entities …