Spain's BBVA approaches rival Sabadell regarding possible merger

Spain's second-largest lender BBVA has expressed its renewed interest in a takeover of its smaller rival Banco Sabadell.

BBVA said it had told Sabadell's board of its interest in exploring a possible start too negotiations.

When combined, the two lenders would have a market value of just under €70bn or nearly as much as rival Santander, the country's largest bank.

The news was first reported earlier by Sky News.

Banco Sabadell later confirmed the approach, saying that its board would "adequately" analyse all the aspects of the proposal.

An attempted merger in 2020 was later abandoned.

As of 1408 BST, shares of Banco Sabadell had shot 6.22% higher to ~€1.8455, whilst those of BBVA had fallen by 6.83% to €10.16.