Shares of Banco de Sabadell SA (MCE:ES:SAB) slid 17% on Friday after the Spanish bank said merger talks with bigger rival BBVA SA (NYS:BBVA) (MCE:ES:BBVA) had ended. The deal would have created an entity with a market cap of about 27.5 billion euros ($32.76 billion). Shares of BBVA (NYS:BBVA) (MCE:ES:BBVA) , which also confirmed talks had ended, rose 2% in Madrid. Sabadell said it will instead launch a new strategy prioritizing its Spanish domestic business. "Sabadell is by far the smaller bank in terms of size and assets which makes the decision to call time on the discussions all the more puzzling. The bank has seen its adjusted net income shrink from €1 billion n in 2016 to as little as €242 million in the nine months to September, and is clearly struggling," said Michael Hewson, chief market analyst at CMC Markets, in a note to clients.
Nov. 27, 2020, 4:48 a.m. EST