The standoff surrounding Spanish bank BBVA’s hostile takeover of Banco Sabadell remains in limbo. BBVA, however, is not relenting, describing the deal as “the most attractive project in European banking.”
For this reason, BBVA continues to pursue approvals from regulators. On March 19, Morocco’s central bank, Bank Al-Maghrib, became the latest to approve the transaction. With the green light, BBVA is set to enter the Moroccan market by taking over Sabadell’s branch.
Morocco joins the European Central Bank, the US, the UK, France, Portugal, and Mexico in granting its approval. The Spanish government and its anti-competition watchdog, CNMC, remain the main obstacles to the takeover. Sabadell has publicy rejected BBVA’s proposas to take it over.
“Both BBVA and Banco Sabadell shareholders will become the owners of a bank better prepared for the future,” said BBVA chairman Carlos Torres Vila during the bank’s March 21 annual general meeting in Bilbao.
According to him, the deal creates a strong bank with the right scale to meet the financing needs of modern economies, particularly in infrastructure, technological transformation, and energy transition. If it goes through, the outcome will be a behemoth with €1 trillion ($1.06 trillion) in assets.
BBVA’s entry into Morocco is strategic. It takes over the operations of Sabadell, which has operated in Morocco since 2009. Sabadell targets trade relations and serves many Spanish companies that have business interests. It has particularly built a strong base in the SME segment.
Morocco offers vast opportunities for BBVA, one of the most profitable banks in Europe. In 2024, BBVA posted €10 billion in profits. The country is Spain’s top trading partner in Africa, with trade volumes hitting €22.7 billion in 2024.
Apart from trade, remittances are booming. With over one million Moroccans living in Spain, remittances have nearly doubled over the past decade to stand at €1.3 billion in 2023. BBVA contends the “union” with Sabadell poses great opportunities as it implements a new 2025-2029 strategic plan. The strategy emphasizes customer acquisition, growth in business segments, sustainability and maximizing the potential of artificial intelligence and innovations to drive expansion.
