Spanish banking group Banco Sabadell is looking for strategic options in the European banking sector as merger talks begin to take place, Bloomberg reported.
Sabadell is already working with Goldman Sachs to look for deal options including a sale or merger, asset disposals and small acquisitions.
Go deeper with GlobalData
The Alicante-based bank intends to reduce costs and small business loan exposures, the report added.
Sabadell is also looking at deal options for its UK-based loss-making arm TSB Banking Group, which is currently facing scrutiny from investors.
No deals have been finalised yet, and the lender can stop pursuing any deal.
In July, Banco Sabadell CEO Jaime Guardiola said that the ongoing Covid-19 pandemic has created “a climate” for mergers.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLast year, Sabadell had sold Amundi – its asset management arm – to boost its capital. Banco Sabadell has a market value of $2.6bn.
Banks in Europe are preparing for cross-border mergers and deals, according to Bloomberg.
Recently, Spanish lenders CaixaBank and Bankia are exploring a merger to create the biggest domestic bank in Spain with €650bn ($768.7bn) in total assets.
The discussion comes at a time when the European economy has been badly hit by the Covid-19 pandemic. A potential agreement could spur mergers across the region.
Italy’s treasury is planning to find a buyer by the end of this year for troubled lender Banca Monte dei Paschi di Siena (BMPS).
Italy’s government is reportedly looking at Banco BPM as the right fit for acquiring BMPS.
Banco BPM said that it remains ready for further industry consolidation following UBI Banca’s hostile takeover by Intesa Sanpaolo.
In May, HSBC signed a deal with Landesbank Baden-Wuerttemberg (LBBW) to take full control of its German unit.
