Spain regulator approves Sabadell's bid for rival Guipuzcoano

 

Spanish mid-sized bank Sabadell has won approval from Spain's stockmarket regulator CNMV for its bid to buy smaller rival Guipuzcoano, the regulator said on Thursday.

Catalan bank Sabadell will add 12 percent in assets and 14 percent in deposits with the friendly takeover of Guipuzcoano, based in Spain's Basque Country, which has a market capitalisation of 624 million euros ($875 million), according to Reuters data.

Spain's listed banks have largely escaped the takeovers and government intervention seen in other European countries, due to their relatively small exposure to the U.S. subprime mortgage crisis which sparked off the global financial crisis.

Sabadell plans to offer five of its own shares and five convertible bonds for each eight Guipuzcoano shares it receives.

Holders of nearly 46 percent of Guipuzcoano shares have already agreed to accept Sabadell's offer, which is conditional on winning acceptances from holders of 75 percent of the Basque bank's shares.

Sabadell closed down 0.95 percent at 3.55 euros per share ahead of the announcement, while Guipuzcoano's closed up 0.95 percent at 4.24 euros.