Post by account_disabled on Jan 17, 2024 14:18:30 GMT 10
Banco Sabadell will be the next to announce a merger or acquisition in Spain, judging by the market reaction, which has caused its shares to revalue around 33% since CaixaBank and Bankia announced their intention to merge. Those responsible for Alvarez & Marsal pointed out this Wednesday, during the presentation of the report "The Pulse of Banking", that this union will result in the first Spanish entity in assets, which will generate "new repositioning needs" among banks. like Sabadell. Consolidation "is a catalyst for efficiency" and in that sense, the merger of CaixaBank and Bankia, if it materializes, would be positive, since both need to improve these ratios in this "post-covid" scenario , say these experts.
In his opinion, for the moment there will only be integration movements on a national level, since pan-European mergers do not generate as many synergies as local ones. In fact, Bloomberg assures, without identifying its sources, that Banco Sabadell has been studying various strategic possibilities for months, including the option of a merger, and that it is working with Goldman Sachs to adapt to the new Whatsapp Number List scenario that opens with the merger of Bankia and CaixaBank. In any case, they have pointed out, the entities that want to play in the European league will have to have a size of assets similar to the more than 600,000 million that Bankia and CaixaBank would add, which are equivalent, in turn, to BBVA's assets in all. the world. The merger marks the end of the rescue of Spanish banks "At the expense of what comes with this new crisis" , the possible merger has another notable aspect and that is that it would shelve the restructuring of the Spanish financial system of the last 10 years, since the State would remain as a minority shareholder.
in the new entity, with 14% compared to the current 62%. In this way, Spain would become one of the few European countries that received aid that has managed to get the State to withdraw from the capital of its entities, unlike what happens in Ireland, Holland or the United Kingdom, which still carry the burden of their rescue, they added. Those responsible for Alvarez & Marsal consider, however, that it is premature to talk about the return of dividends, the main demand of the shareholders and whose distribution paralyzed the ECB in the middle of the pandemic, since the exact impact of the covid crisis on it is not yet known. the accounts of the merged bank, in the credit market or in provisions. In any case, they are convinced that the ECB will not allow the negative consolidation difference of this operation or "badwill" to be used as dividends, which, however, can be used to cover the costs of the restructuring.
In his opinion, for the moment there will only be integration movements on a national level, since pan-European mergers do not generate as many synergies as local ones. In fact, Bloomberg assures, without identifying its sources, that Banco Sabadell has been studying various strategic possibilities for months, including the option of a merger, and that it is working with Goldman Sachs to adapt to the new Whatsapp Number List scenario that opens with the merger of Bankia and CaixaBank. In any case, they have pointed out, the entities that want to play in the European league will have to have a size of assets similar to the more than 600,000 million that Bankia and CaixaBank would add, which are equivalent, in turn, to BBVA's assets in all. the world. The merger marks the end of the rescue of Spanish banks "At the expense of what comes with this new crisis" , the possible merger has another notable aspect and that is that it would shelve the restructuring of the Spanish financial system of the last 10 years, since the State would remain as a minority shareholder.
in the new entity, with 14% compared to the current 62%. In this way, Spain would become one of the few European countries that received aid that has managed to get the State to withdraw from the capital of its entities, unlike what happens in Ireland, Holland or the United Kingdom, which still carry the burden of their rescue, they added. Those responsible for Alvarez & Marsal consider, however, that it is premature to talk about the return of dividends, the main demand of the shareholders and whose distribution paralyzed the ECB in the middle of the pandemic, since the exact impact of the covid crisis on it is not yet known. the accounts of the merged bank, in the credit market or in provisions. In any case, they are convinced that the ECB will not allow the negative consolidation difference of this operation or "badwill" to be used as dividends, which, however, can be used to cover the costs of the restructuring.