Last month, Banco Bilbao Vizcaya Argentaria, or BBVA as they’re better known, addressed the Board of Directors at Banco Sabadell, proposing a merger of the two entities to create a European financial service provider.
In their letter, the Spanish financial institution stated that the union would create the most compelling industrial project in European banking, and highlighted the benefits for both entities, their shareholders, and employees and clients, as well as the communities in which they operate.
But what are these benefits, and how exactly will this affect people, businesses, and communities?
Discover everything you need to know in this article.
What’s the vision behind the merger?
BBVA’s vision behind the merger with Banco Sabadell is to create the ultimate European banking powerhouse.
By combining the strengths, resources, and expertise of the two firms, the merged entity aims to become a leading contender in the European banking landscape by leveraging synergies, expanding market presence, and enhancing competitiveness.
In doing so, the financial institution hopes this will help better serve their customers, drive innovation, and deliver sustainable growth.
Additionally, the combined banks will enable them to navigate economic hurdles more effectively and capitalise on opportunities for expansion and divergence.
What does it mean for customers and shareholders?
For customers of either bank, the merger could mean a wider variety of banking services and products to choose from, as well as – potentially – improved online banking experiences.
With the two entities merging to form a larger bank, it could also mean increased availability of ATMs and more in-person branches, allowing for much greater convenience.
However, it’s important to note that the merger could mean changes in fees, interest rates, and account terms – but customers will be made aware of this before the merger takes place.
Shareholders, on the other hand, could see an increased value of their shares and benefit from cost savings and synergies realised through the merger, which could translate into higher profits and dividends.
The merger doesn’t come without its risks for shareholders, though, as integration challenges and regulatory hurdles could affect shareholder returns.
With all this said, the overall effects depend entirely on how successful the merger is in achieving its goals.
What about mortgages?
The merger is also great news for those wanting to obtain a Spanish mortgage.
Whether you’re a local or relocating from overseas, the proposed merger will make it much easier to obtain a mortgage, and could even mean a wider range of products, flexible contract terms, and highly competitive interest rates. It may also lead to a much more streamlined mortgage application process, speeding up approval times and providing a much smoother customer experience.
However, existing borrowers should be aware of changes in fees, policies, and customer service standards that may occur as a result.
Contact Fluent Finance Abroad
Put simply, the BBVA/Banco Sabadell merger could be huge for the European banking landscape, and great for new and existing customers and shareholders, too!
If you have any concerns, or would like to find out more about what the proposed changes could mean for you and your finances, be sure to get in touch with our expert team today by calling +34 952 85 36 47, or email info@fluentfinanceabroad.com and we’ll get back to you!
We’re always on hand, and would be more than happy to answer your questions.
