BBVA Eyes €12B Sabadell Bid Amid European Bank Profits Boom
Deal News | Jan 13, 2025 | EIN
European banks and asset managers are under increasing pressure to consolidate to remain competitive against larger U.S. firms. Following a period of record profits and stock gains, the sector is expected to experience a surge in mergers and acquisitions. The anticipated administration of U.S. President-elect Donald Trump in 2025 is expected to reduce regulatory constraints for U.S. banks, further intensifying competition. Key industry figures predict significant deal-making activity, particularly in alternative investments and fintech. However, political factors may influence the occurrence of mergers, including BBVA's €12 billion bid for Sabadell and UniCredit's €10 billion offer for BPM Banco, both facing governmental opposition. The financial services M&A volume in Europe reached €52 billion last year, the highest since 2015. Experts also foresee increased interest from North American firms in European asset managers like abrdn and Schroders due to their undervaluation.
Sectors
- Banking
- Asset Management
- Fintech
Geography
- Europe – The article primarily focuses on the European banking and asset management sectors and their competition with U.S. counterparts.
- United States – The article mentions the potential impact of U.S. policies under the anticipated presidency of Donald Trump on competition with European banks.
Industry
- Banking – The article discusses consolidation and mergers in the European banking sector, highlighting significant bids by major banks such as BBVA.
- Asset Management – The article mentions the pressures on European asset managers and potential for mergers to remain competitive against larger U.S. firms.
- Fintech – The article predicts increased M&A activity in the fintech sector as banks seek alternative investments.
Financials
- €12 billion – The value of BBVA's unsolicited bid for Sabadell.
- €10 billion – The value of UniCredit's offer for BPM Banco.
- €52 billion – The total annual volume of financial services mergers and acquisitions in Europe last year.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| BBVA | Bidding Company | Company | A major Spanish bank that has made a bid for Sabadell worth €12 billion. |
| Sabadell | Target Company | Company | A Spanish bank that is the target of a €12 billion bid from BBVA. |
| UniCredit | Bidding Company | Company | An Italian banking group that made a €10 billion offer for BPM Banco. |
| BPM Banco | Target Company | Company | An Italian bank that is the target of a €10 billion offer from UniCredit. |
| Robeco | Commentator | Company | A fund management company providing insights into the European banking sector. |
| EY | Analyst | Company | A professional services company providing analysis on financial services M&A in Europe. |
| Boston Consulting Group | Commentator | Company | A management consulting firm providing insights into North American interest in European asset managers. |
| abrdn | Potential Target | Company | A mid-sized active manager potentially targeted by North American firms. |
| Schroders | Potential Target | Company | A mid-sized active manager potentially targeted by North American firms. |