BBVA has revealed plan to proceed with its takeover bid for Sabadell, despite government restrictions preventing a full merger for at least three years. 

This was one of the conditions imposed by the Spanish government for the hostile takeover proposal, with the possibility of extending these restrictions for a further two years after the initial period. 

BBVA Chair Carlos Torres Vila said: “The project creates significant value for the shareholders of both entities and represents a unique opportunity to build one the most competitive and innovative banks in Europe.  

“Together we will be a stronger institution, with greater scale and the capacity to increase lending to households and business by €5 billion annually, thereby supporting the economic growth of our country.”  

Meanwhile, Santander has submitted a binding offer for Sabadell’s UK unit, TSB, according to sources cited by Reuters.  

The offer reportedly values TSB at more than £2.3bn ($3.15bn). 

Barclays had also submitted a bid for TSB, as noted by La Vanguardia.  

The news agency further noted that, Sabadell is reportedly considering holding a board meeting as early as today to evaluate the bids and decide whether to proceed with a sale, and if so, which offer to accept.  

The potential sale of TSB comes as Sabadell seeks to fend off BBVA’s takeover attempt, the Reuters report said.  

Last month, Sabadell confirmed it had received unsolicited interest in TSB, with Santander and Barclays reached final race.  

An earlier report from Bloomberg highlighted that a TSB sale could limit BBVA’s access to a key asset in its acquisition strategy.