Zurich Insurance Group has significantly increased its stake in Banco Sabadell, now owning nearly 4% of the Spanish bank. This move comes as Sabadell faces a takeover bid from BBVA, a larger competitor. Zurich’s investment is noteworthy, especially since it has become Sabadell’s second-largest investor.
The Swiss insurer first crossed the 3% ownership threshold in October and has been buying shares more aggressively since late last month. According to the Spanish regulator, CNMV, Zurich’s current stake is valued at about €570 million, or roughly $618 million. This investment is crucial for Zurich, as Sabadell serves as an important partner in selling its insurance products. Last year, the collaboration generated $643 million in insurance revenue for Zurich.
Sabadell is currently in a defensive position, trying to fend off BBVA’s takeover attempt. The offer from BBVA requires approval from various regulatory bodies before it can be presented to Sabadell’s shareholders. Sabadell’s management has already rejected BBVA’s bid, citing it as too low. Additionally, the Spanish government has expressed concerns about the potential for increased market concentration if the takeover goes through.
Sabadell’s stock has performed well this year, rising about 45%, making it one of the standout performers among major European banks. This positive trend may have encouraged Zurich to increase its stake, as the partnership between the two companies remains beneficial.
Representatives from both Zurich and Sabadell have chosen not to comment on the situation. As the market continues to watch these developments, Zurich’s growing influence in Sabadell could play a significant role in the ongoing takeover drama.