Why BBVA failed in its hostile takeover bid for Banco Sabadell

Core Viewpoint - BBVA's €17 billion takeover bid for rival lender Sabadell has failed, with only 2.8% of shareholders accepting the offer, falling short of the 30% threshold needed for a potential second bid and the 50% needed for control [1][3][4] Company Developments - BBVA plans to resume its dividend and share buyback plans in the coming months, including a pending share buyback of around €1 billion starting October 31 [1][6] - Following the failed takeover, BBVA's US shares experienced a jump, indicating a positive market reaction despite the setback [6] Industry Context - The failed acquisition is part of a broader trend, marking the second domestic banking deal failure in Spain this year [8] - The Spanish government imposed stringent conditions on the potential merger, including a three to five-year period before a full merger could occur, raising questions about the synergies BBVA had anticipated [3][4] - The outcome has been positively received by political figures in Spain, particularly in Catalonia, where concerns about the regional banking system were highlighted [5]