Spanish lender Banco Sabadell has entered into discussions for divestiture of its Andorra business to local lender MoraBanc.
Sabadell owns around 51% of the shares of Banc Sabadell d’Andorra, which was established in 2000.
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The business caters to 23% of individuals and 32% of companies in Andorra and oversees around €1.8bn in total resources.
If the parties pull through a transaction, minority shareholders should be able to join it on the same terms agreed with Sabadell.
Banco Sabadell CEO César González-Bueno said: “These conversations are part of our strategy to focus our activity of business in Spain and consider those international corporate operations that make sense both due to the nature of the buyer and the economic conditions raised.”
Last year, Sabadell and BBVA ended their merger talks as they could not reach an agreement over price.
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By GlobalDataAccording to media reports, power struggle at the new BBVA-Sabadell entity was also a key concern in the merger.
The deal if materialised, would have created an entity with nearly €600bn in assets and a market value of €26.7bn in Spain.
Sabadell also planned to sell its UK unit TSB, which it acquired in 2015 and that was later was hit by an IT meltdown. However, as of now, the sale plans have been put on hold.
Last month, TSB launched 43 new pop-up branches in communities across the UK following a series of branch closures.
Of the pop-ups, 22 are in England, 19 in Scotland and two in Wales. Most of them are in locations where it takes customers longer than 20 minutes to travel to their nearest TSB branch.
Sabadell reported a net profit of €73m in Q1 2021, compared to a net profit of €94m a year ago. On the bright side, TSB returned to profit this quarter.
