One of Spain’s most famous banks – Banco Sabadell made an announcement on Friday that pointed towards the agreement for the launch of a takeover campaign. This campaign is intended to merge the small rival bank — Banco Guipuzcoano with Banco Sabadell.
In a statement issued by Banco Sabadell, an offer for 5 shares and 5 mandatory convertible bonds for every 8 shares of Guipuzcoano was made. Chairman Jose Oliu of Banco Sabadell said that the inclusion of Banco Guipuzcoano in the group of Sabadell Banks is a wise decision and it will strengthen the Banco Sabadell footprints in the northern region of Spain.
Banco Guipuzcoano basically hails from the northern Basque region of Spain and it will continue to operate in the same manner, under its own legal identity. Presently, Banco Sabadell is a nationwide lender with assets that are worth 84 Billion Euros.
Last month, it was announced that both banks were calculating the odds for a merger and now, Banco Sabadell’s takeover has served its purpose. This merger will shed some load off the regional saving banks which have been collapsing due to the crisis of the country’s property and construction market since 2008.