MADRID (Reuters) – BBVA and Sabadell ended merger talks on Friday after they failed to agree on price, stalling a wave of Spanish bank tie-ups and putting Sabadell’s loss-making British lender TSB on the block.
The collapse piles pressure on Sabadell, which was seen as the weaker partner. The smaller Spanish bank said it would announce a new business plan, with a focus on its home market, in the first quarter of 2021.
European banks are struggling with ultra low interest rates and the fallout from the COVID-19 pandemic is forcing them to focus on cutting costs, either alone or through tie-ups.
Before entering formal talks with BBVA in mid-November, Sabadell was focused on an efficiency plan. It said it will now