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Stock impact report

BBVA's Deal Appetite Signals a Bigger Shakeup at European Banks [BNN Bloomberg (Canada)]

Banco Bilbao Vizcaya Argentaria S.A. (BBVA) 
US:NYSE Investor Relations: shareholdersandinvestors.bbva.com
Company Research Source: BNN Bloomberg
The announcement by Banco Bilbao Vizcaya Argentaria SA on Tuesday that it wants to begin talks to take over Banco Sabadell SA comes as further evidence that a long hoped-for consolidation in the region's banking market is accelerating. While a tie up would not be the transformational, cross-border merger that many bankers and regulators have wanted, it stands to create a lender with more than €1 trillion ($1.1 trillion) in assets and a market value close to Banco Santander SA's current €72 billion valuation. It would give BBVA a profitable UK business as well as enable them to grow their Mexican business. An unusual confluence of factors has arrived. After almost two years of interest rate hikes, many lenders have reaped record profits that they're under pressure to put to good use — and buybacks aren't always the answer. As the focus now turns to when rates will go down again, executives are looking for opportunities to diversify. “As we slowly approach the first potential Eur Show less Read more
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