Zurich Insurance Expands Sabadell Stake Amid BBVA Deal Bid

Zurich Insurance Group AG has amassed a substantial stake in Banco Sabadell SA, potentially giving it more influence over an important source of sales that’s facing a hostile takeover bid.

The Swiss firm has increased its holding in Sabadell to almost 4% since first crossing the notification threshold of 3% in October, according to data published by the Spanish regulator CNMV. The insurer started accelerating the purchases late last month and has recently become the bank’s second-largest investor, according to the CNMV website.

The growing investment comes while Sabadell is seeking to defend itself against a takeover by ...