Spain’s Banks at Vanguard of Deal Wave Sweeping European Finance

  • BBVA in talks to acquire Sabadell after selling U.S. unit
  • Country seeing rapid consolidation with more deals ahead
Photographer: Angel Garcia/Bloomberg
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Spain’s banks are at the forefront of a merger wave that’s reshaping Europe’s financial landscape, with industry leaders counting on accelerating consolidation to cut costs and confront a grim economic outlook.

Banco Bilbao Vizcaya Argentaria SA’s likely takeover of rival Banco de Sabadell SA would see the bank vie for the position of national powerhouse with a combined CaixaBank SA and Bankia SA. It would also give it more heft to compete with Banco Santander SA, whose international presence far outweighs its domestic assets.