Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 64

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 64
---
 and other operating efficiencies, and could have an adverse effect on the business, results of operations, financial condition or prospects of BBVA and
Banco Sabadell after completion of the exchange offer.

42

BBVA’s inability to merge with Banco Sabadell

BBVA is undertaking the exchange offer to acquire control of Banco Sabadell in order to be in a position to, subject to relevant approvals,
integrate both businesses and create a stronger combined group, which BBVA expects to result in substantial cost synergies. BBVA has projected cost synergies of approximately €850 million per year before taxes for Spain and Mexico resulting
from the intended merger, once they are fully realized.

If the exchange offer is completed, regardless of the percentage of Banco
Sabadell shares acquired by BBVA pursuant to the exchange offer, BBVA intends to promote, after the settlement of the exchange offer, and irrespective of whether the thresholds provided for in articles 116 of the Spanish Securities Market Law and 47
of the Spanish Takeover Regulation for the exercise of the right of squeeze-out are met, subject to market conditions or other circumstances making it inadvisable to carry out such merger process or carry out
such merger process on such terms, a merger by absorption of Banco Sabadell by BBVA, with an exchange ratio equivalent, as far as possible, to the consideration offered in the exchange offer.

The consummation of the intended merger will require the formulation by BBVA and Banco Sabadell’s respective boards of directors of the
joint plan of merger, the approval of such joint plan of merger by the respective shareholders of BBVA and Banco Sabadell, and the prior authorization of the Spanish Minister of Economy, Trade and Business, and, accordingly, BBVA can provide no
assurance that the intended merger will be consummated. See “The Exchange Offer—Certain Consequences of the Exchange Offer—Squeeze-out and Merger”.

If the intended merger is not consummated for any reason, BBVA believes that it is unlikely to achieve the full costs savings and other
operating efficiencies or to realize the revenue and earnings growth that might otherwise be possible. However, BBVA believes that it will be able to capture the majority of the cost synergies that would be realized if the intended merger were
consummated. This is because BBVA expects that, even if the merger is not consummated, it will still be able to centralize certain processes of Banco Sabadell in BBVA and