BBVA shareholders approve capital increase for Banc Sabadell takeover
President Carlos Torres says acquisition will be a 'success' and make bank 'more competitive'
![BBVA president Carlos Torres](https://cdn-acn.watchity.net/acn/images/8adad239-d2b1-4848-8662-5d0e23ce63e2/633bdcfc-f32e-4862-bdd3-19b15326ffd5/633bdcfc-f32e-4862-bdd3-19b15326ffd5_medium.jpeg)
BBVA bank shareholders have approved a capital increase of €551 million and the issuing of 1.12 billion new shares to finance the takeover bid for Banc Sabadell.
The measure, which received the support of 96% of shareholders, was approved during an Extraordinary General Meeting on Friday.
BBVA president Carlos Torres said the takeover would be a "success" that would result in a "stronger, more competitive and profitable" bank.
To formalize the takeover bid, BBVA must now obtain approval from the European Central Bank (ECB) and Spain's National Commission for Markets and Competition (CNMC) and National Securities Market Commission (CNMV).
During the meeting, several union representatives warned of the operation's impact on the workforce, citing possible layoffs and increased workloads.
They urged the bank to use "non-traumatic measures" such as early retirement instead of layoffs, and to ensure that any job cuts are voluntary and consensual.
BBVA's offer to Banc Sabadell
The BBVA's offer includes a 30% premium per share and a guarantee of "total commitment" to Catalonia.
BBVA also offers Sabadell three seats on its board of directors, one of them as vice president.
Its proposal includes having two corporate headquarters, maintaining Sabadell's current offices in Sant Cugat, just outside Barcelona.
BBVA said it would maintain the Sabadell brand in areas where there is "relevant commercial interest."
Shortly after the bid was announced, the Spanish government and Catalan governments rejected it.
BBVA had already attempted to acquire Sabadell in the past, with a negotiation, but because of the negative outcome of such talks, the Basque bank decided to go through with a hostile takeover bid.