José Ramón Iturriaga: the benefits of the market

The pulse between the BBVA and the Sabadell comes its final stretch. And the two banks are throwing the rest. They exchange blows, in the form of advertisements in the media, in which they break the benefits of their respective proposals. The Basque Bank is about … Reaching the Sabadell minority shareholder because it knows that it is who, ultimately and for the strong link of many of these shareholders with the Catalan bank, will have the last word. The message is how far they can go together. To which Sabadell responds very closely, emphasizing how very well they have been alone in recent years. Yesterday double page in practically all media came out with A letter signed by OLIUillustrated with a graphic that reflected the behavior of the prices of the actions of Spanish banks since the first approach threat was truncated more than four years. This situation, regardless of the outcome, give rise to some reflections on the banking sector as a whole and on this specific operation. The first is that the consolidation process is not over.

In Spain the transformation has been absolutely extraordinary -half of the Financial system That it was in the hands of the boxes in 2008 has practically volatilized, which undoubtedly constitutes a great advance- but the last ponytches remain. There are some entities that are not or, rather, still without being, owners of their destiny. These entities passed the Rubicón but it does not make much sense to follow their way for an efficiency issue. One more one, in the case of banks, is more than two. In addition, it is something sought by the supervisor, so the Pacatos approaches that some try to boost have very short legs.

On the other hand, the evolution of the price of the shares in recent years to which the Sabadell is grabbed, is a very good sample of the change that has occurred in the European financial system. The profitability of the bank has been normalized so the buyer no longer has the pan by the handle. Prices are others. And the multiple to be paid for those synergies that will be achieved with integration is higher than it was only four years ago. It is something that potential buyers also have to assimilate. The chollos are over.

Finally, we must also understand that The European dance has started. Orcell has been the first to move card but the rest will continue. The Spanish medium entities are probably the best entrance door to a market as competitive as ours. And the ban has already risen.

In summary and regardless of what ends up happening in this episode, do not hesitate that there will be more chapters. If it comes out because that will cause some other trying to flock the dish. And if it doesn’t come out because that forces everyone to reposition. At a time when any day of these We woke up with a European entity playing the door. And, finally, in a market in which sellers have the last word. Does anyone doubt the benefits of the market?

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