Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 123

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 123
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 infrastructure, which is expected to allow the combined group to have a unique technological platform ( core banking), generating savings from avoiding redundancies in investments and expenses in transformation, regulatory and legal compliance, cybersecurity, fraud protection and development of platforms for new businesses, as well as avoiding redundancies in data center operations. These cost synergy savings are related to increased efficiency in central services in Spain and Mexico. In the United Kingdom, BBVA has not estimated any cost savings. BBVA estimates that the rationalization of the branch network in Spain will be limited to less than 10% of the combined network, equivalent to 300 of the approximately 870 branch offices within a proximity of less than 500 meters identified in the combined group network. The implementation of these operational synergies is estimated to take three years, with 25% materializing in the first year and reaching full implementation in the third and subsequent years. These operating cost synergies have been estimated without access to non-public information relating to Banco Sabadell and are based on the volume of employees, offices, clients and transactions of Banco Sabadell but considering BBVA’s unit production costs, conditions with its strategic suppliers and process efficiencies. In estimating these cost synergies, BBVA has not relied on any other methodology or taken into account any other information. BBVA has considered the estimated cost savings in light of synergies achieved in comparable transactions and based on BBVA’s experience in prior transactions.

| • |     | The implementation of financing cost synergies, which are estimated to be approximately €100 million                          
 per year, are expected to be materialized in accordance with the expected maturities of existing issuances of Banco Sabadell. |

To achieve these cost savings, BBVA has estimated restructuring costs that include the closure of branch offices, personnel reductions, severance costs and other necessary expenses for the integration of both entities, in each case considering BBVA’s experience in prior transactions. The aggregate amount of these restructuring costs is estimated at approximately €1,450 million before taxes, which would be recorded in the income statement in the first year. Additionally, based on the same considerations, BBVA estimates expenses of €70 million per year for the amortization of IT for a period of five years, mainly from investments necessary to carry out the integration. 95

BBVA may not be able to fully realize these expected synergies. See “Risk Factors—BBVA may fail to fully realize the expected benefits and synergies of completing the exchange offer”. In making the above synergies estimates,