Banco CAM has been allocated to Banco Sabadell following a competitive tender organised by the FROB, Spain's Fund for Orderly Bank Restructuring. This outcome throws light into the future of Banco CAM since it is to be incorporated into the Banco Sabadell group.
Banco Sabadell's interest is strategic since Banco CAM is a significant complement to its existing franchise in Alicante, Murcia, Valencia and the Balearic Islands.
Banco CAM's balance sheet was cleaned-up and strengthened prior to the acquisition, which ensures it can be integrated without impairment for Banco Sabadell's balance sheet. Banco CAM also has additional liquidity guarantees to ensure normal operation over the coming years.
"With this transaction," said Chairman Josep Oliu, "Banco Sabadell has acquired a sound institution with no substantial additional risk to our franchise, due to the balance sheet clean-up, recapitalisation and liquidity provided by the Spanish deposit insurance scheme (FGD) and the FROB. This puts an end to a period of uncertainty and instability for Banco CAM and marks the beginning of a new era, sustained by the confidence of having a sound balance sheet and by its integration into the Sabadell group, a leading bank in the domestic market and one that has a solid base upon which to develop in the future."
Banco CAM provides an additional 5 million customers for Banco Sabadell. The Sabadell group's total assets will increase by 75%.
“The complexity and size of this acquisition is comparable to that of Banco Atlántico a few years ago”, said Josep Oliu. "Times have changed and Banco Sabadell's management is now better equipped to integrate this franchise and leverage its value. The transaction will provide peace of mind to CAM's customers, and also its employees, who will have to work hard but whose future is no longer shrouded in uncertainty. This is good news for all involved parties."
Integrating Banco CAM into the group is a new challenge for Sabadell's management team. The sound experience gathered in the previous acquisitions—Natwest, Herrero, Atlántico, Urquijo and Guipuzcoano—reassures that the process will be successful.
During the transaction, Banco Sabadell received financial advice from Nomura International and Deutsche Bank and legal advice from the Roca Junyent law firm.
Key figures
CAM is Spain's tenth-largest financial institution in terms of business volume and ranks third in Valencia and Murcia in terms of branch numbers. 24% of Banco CAM's branch offices are located in the city and province of Alicante.
|
As of 30 June 2011 (monetary amounts in million euro)
|
Banco Sabadell |
CAM |
|
Total assets |
95,049 |
71,297 |
|
Gross customer loans |
72,435 |
52,350 |
|
Customer deposits |
50,057 |
30,010 |
|
Off-balance sheet assets |
18,563 |
3,400 |
|
Own funds |
6,317 |
541 |
|
Branches in Spain |
1,340 |
939 |
|
in the Valencia region |
116 |
398 |
|
in Murcia |
22 |
153 |
|
Employees |
10,610 |
6,432 |
* All figures exclude recapitalisation with funds from the FGD.
