PARIS: BPCE has acquired a stake equivalent to approximately 7% of the share capital of Banco de Sabadell, S.A. (“Sabadell”) through market purchases and financial instruments.

The companies did not disclose the value of the transaction. At current market prices, a 7% holding in Sabadell is valued at around €1.19 billion ($1.33 billion).

BPCE and Sabadell wish to underline the friendly nature of this equity investment, with BPCE intending to be a stable and long-term shareholder and to be represented on the board of directors of Sabadell, the fourth-largest Spanish bank, which holds leading positions in SME financing.

The parties are also willing to explore strategic cooperation to make BPCE’s capabilities available to Sabadell’s clients and to create additional value together.

“BPCE’s investment in Sabadell is fully in line with its Vision 2030 strategic plan. It marks a further step in its ambition to develop and diversify its presence in Europe. It reflects our confidence in Sabadell’s management, strategy and long-term potential”, said Nicolas Namias, CEO of BPCE.

“We share a strong belief in the importance of having deep roots in the communities and markets where we operate, serving our clients and supporting the real economy. Sabadell’s leading positions in Spain, combined with Groupe BPCE’s expertise and international capabilities, create promising opportunities for cooperation and value creation for our clients and the Spanish economy”.

Banco Sabadell Chairman, Josep Oliu, stated: ” We are very pleased to welcome BPCE as a shareholder of our institution. Their decision to invest in our company is a recognition of the strength of our standalone project, the work carried out by our professionals, and the growth opportunities that lie ahead. Their presence reinforces the strength and stability of our shareholder base.”

Marc Armengol, Chief Executive Officer of Banco Sabadell, said: ” This transaction strengthens our ability to continue executing our strategic plan and generating sustainable long-term value. The investment of BPCE brings us a partner with a long-term vision and extensive experience, which we believe can complement our capabilities and help us successfully seize the opportunities presented by the market.”

Following this acquisition, BPCE has become a strategic shareholder for Sabadell. BPCE, the second-largest banking group in France and the fourth largest in the eurozone by shareholders’ equity, and Sabadell, the fourth-largest Spanish bank, are leading players in their respective markets.

BPCE is fully supportive of Sabadell’s strategy and growth plans, as well as its management team, which has successfully led a remarkable transformation of the bank. BPCE does not intend for its shareholding in Sabadell to exceed 9.9%. With Sabadell’s support, BPCE will initiate the steps and discussions required with the Spanish and European supervisory authorities in connection with the appointment of a director to Sabadell’s board, subject to applicable governance procedures and required approvals.

BPCE and Sabadell intend to explore business cooperation opportunities, in particular in corporate and investment banking, equipment leasing, consumer credit, and cross-border clients business. These discussions, which the parties expect to conclude in early 2027, will aim to identify areas where cooperation could support Sabadell’s development in Spain while further strengthening BPCE’s European footprint.

BPCE and Sabadell will inform the market, in accordance with applicable regulations, of any material development in these discussions.