Spain’s BBVA closes deal with Merlin to buy back 662 branches
2022.04.01 20:11
A woman walks past a BBVA bank branch in Madrid, Spain, November 15, 2021. REUTERS/Juan Medina
MADRID (Reuters) – Spain’s BBVA (MC:BBVA) on Friday said it had bought back 662 branches, which it sold between 2009 and 2010 under a sale and lease back agreement to Tree Inversiones Inmobiliarias, owned by real estate company Merlin Properties.
As part of deal, the Spanish bank agreed to pay 1.99 billion euros ($2.20 billion) for 100% of the shares of Tree Inversiones Inmobiliarias, which owns 659 branches and three individual buildings.
BBVA estimated the deal would hit its capital by 7 basis points and have a negative net impact of 200 million euros once the transaction is completed, which is expected at the end of the second quarter.
The lender said the impact would be more than offset by the cumulative savings expected when this transaction is executed.
($1 = 0.9056 euros)
