BBVA Says Merger Block to Delay, Not Reduce Sabadell Savings

BBVA SA said the Spanish government’s intervention in its proposed takeover of Banco Sabadell SA will delay but not reduce the deal’s overall cost savings, underlining its determination to pursue a tender offer.

The lender said on Tuesday that Madrid’s decision to block a full merger for several years “will delay the materialization of part of the estimated synergies but in no case will the synergies be lower than previously estimated.”

The statement followed a report by Expansion that Spain’s second-largest bank now expects synergies of about €300 million ($353 million), down from an earlier calculation of €850 million. The ...