Spain

Brookfield may have to dig deeper to bag Grifols

2 Apr 2025

The Canadian firm is eyeing a $7.5 bln offer for the pharma group, as per Spanish media. The juicier bid could still yield an attractive return and Brookfield’s interest, despite fraud allegations, adds value to the company. That may embolden the seller to play hardball.

EU firms’ barriers to Russia re-entry are sky-high

10 Mar 2025

Groups like Renault and Inditex quit the country after Moscow’s 2022 invasion of Ukraine. Contracts make it theoretically feasible for them to return. But even if a peace deal proves possible, the risks are too great for European groups to go back.

EU telcos face a long road to tech sovereignty

7 Mar 2025

Telecoms bosses gathering in Barcelona for their annual shindig talked up the use of AI and a European answer to Elon Musk’s Starlink. But the former depends on Silicon Valley tools, and the latter is tiny in comparison. Securing growth while developing EU champions looks tricky.

Ana Botín’s final target looks the hardest to bag

5 Feb 2025

After strong results, the Santander chair has hit her multi-year goals. But the $85 bln bank’s robust 16% return on tangible equity isn’t reflected in its valuation. Trying to fix this – via big US deals, or further focus in line with local rival BBVA – itself carries risks.

Hostile EU bank M&A raises risk of winner’s curse

30 Jan 2025

Unfriendly deals in the sector have a poor record, hence why they dried up after 2008. But now $72 bln UniCredit, BBVA and Monte dei Paschi have all launched unsolicited offers. Banks’ share-price pop explains the surge, and makes it more likely that bullish CEOs will overpay.

Barclays-Santander UK is a matter of when, and how

20 Jan 2025

The Spanish bank is reviewing its British presence, Reuters reported. Barclays CEO C.S. Venkat is a logical buyer for the unit, probably worth 10 bln pounds or more. The question is whether his buyback-hungry investors like the idea enough to support a deal-enabling rights issue.

Telefónica ouster flags need for a Spain discount

20 Jan 2025

Madrid has used its stake in the $22 bln telco to abruptly replace boss José María Álvarez-Pallete. Spain’s fast growth means it borrows more cheaply than France. But if the government keeps throwing its weight around, domestic companies may warrant a governance markdown.

Brookfield has room to sweeten Spanish drug deal

20 Nov 2024

Grifols rejected a 6.5 billion euro offer from the Canadian firm and its founder family. That’s not surprising, given the offer is far from generous and the pharma company’s sales are recovering. Bruce Flatt’s group can afford to pay more and still clear an acceptable return.

China wins only token victory in EU car wars

13 Sep 2024

Spanish PM Pedro Sanchez wants Europe to drop duties on Chinese EVs, suggesting the Middle Kingdom’s plan to turn member states is working. But blocking the levy will be legally tricky, and Brussels’ credibility is at stake. Beijing faces a long road to upend the union’s plans.

Power grids’ low-wattage resources may spark M&A

13 Aug 2024

European electric utilities have to invest big to meet rising demand. Yet balance sheets are laden with debt and raising equity is tough. Some will have to sell assets, or whole companies. Iberdrola’s $5 bln acquisition of a UK peer at a decent premium could be the first of many.

Flying PIIGS nations stir rethink in Europe’s core

12 Aug 2024

Former crisis economies like Spain, Greece and Italy have outpaced France and Germany by up to 20% since the pandemic. Lower exposure to manufacturing, a tourism boom and Brussels funds all helped. The role reversal may push Berlin to tolerate looser fiscal and monetary policy.

Airlines’ margins head to lower cruising altitude

2 Aug 2024

Carriers from $2 bln Air France-KLM to $7 bln Lufthansa reported healthy demand in the first half of 2024. But earnings are falling as expenses bite. With the switch to sustainable aviation fuel threatening to push costs ever higher, investors are bracing for smaller margins.

Sabadell surfs interest-rate wave away from BBVA

23 Jul 2024

The Spanish bank reckons it can generate at least a 13% return on tangible equity this year and next. It makes BBVA’s 12 bln euro hostile all-share bid less attractive. Sabadell will still suffer if rates fall fast, but a higher offer seems more necessary by the day.

European boards have too little skin in the game

17 Jul 2024

Non-executive directors at big US companies get 60% of their pay in equity. That’s rare in Britain, France and Germany, where many board members own a slither of stock. Cash fees warp incentives, discourage engagement, and risk making Europe’s capital markets less competitive.

Euro zone banks’ periphery premium is here to stay

13 Jun 2024

Lenders in Ireland, Italy, Greece and Spain on average trade with a 30% higher price-to-tangible-book value than French, German and Dutch ones. It reflects a reversal of fortunes between the old periphery and core – but also different business models, meaning the gap may persist.

Spain’s $24 bln investment giant has too many hats

12 Jun 2024

Criteria Caixa takes dividends from its big equity portfolio and sends cash to the country’s top charitable foundation. Increasingly, though, Chair Isidro Fainé is fixated on protecting national champions like Telefónica. Pleasing Madrid means sacrificing returns for the charity.

BBVA’s hostile $13 bln M&A bet faces long odds

9 May 2024

Chair Carlos Torres Vila is going ahead with his all-share offer for Sabadell despite a rebuff from the smaller Spanish bank’s board. Yet Madrid firmly opposes a deal, and BBVA’s sliding stock is denting the bid’s appeal. Success seems unlikely.

Spanish minnow upsets EU bank bosses’ M&A dreams

7 May 2024

Sabadell rejected BBVA’s 12 bln euro proposal, citing its strong standalone prospects. If the boards of other small lenders feel the same, it’s hard to see more deals. That’s a shame, particularly since UBS’s rescue of Credit Suisse is demonstrating the value of consolidation.

Inditex’s golden era is coming to an end

3 May 2024

Asian disruptor Shein is threatening the $142 bln Zara owner’s fast-fashion crown with ultra-cheap wares. Dismissing the risk may threaten its market share. To protect the Spanish giant’s business, CEO Óscar García Maceiras has plenty of cash but no obvious M&A solution.

M&A-shy EU bank investors are own worst enemy

2 May 2024

BBVA’s shares fell 8% over three days after it pitched an all-share acquisition of $10 bln Spanish rival Sabadell. But the returns look good, and the combined group’s capital ratio will remain high. If investors sink this deal, other CEOs in the fragmented sector may think twice.