MADRID (Reuters) -Spain’s BBVA could cut up to 2,500 jobs after the acquisition and a subsequent integration of smaller rival Sabadell, newspaper Expansion reported on Wednesday.
The preliminary calculations from BBVA would be equivalent to slightly less than 6% of the current combined workforce of around 42,000 employees in Spain, according to unidentified sources cited by the paper.
The government opposes the hostile takeover bid, currently worth more than 14 billion euros ($15.66 billion), and rejected by Sabadell, on concerns it could lead to job losses.
The number of planned job cuts could change depending on whether or not BBVA is allowed to merge the two banks and the potential conditions imposed by the government, Expansion said.
BBVA declined to comment.
Under Spanish law, the government cannot stop a bid, but it has the final word on whether a merger goes ahead. In the case the government blocked a full merger, BBVA might be able to integrate Sabadell at a later stage and in the meantime keep Sabadell as a separate unit.
Spain’s competition watchdog approved the proposed deal with remedies last month while the government opened last week a non-binding public consultation on the matter.
BBVA has not disclosed how many jobs would be cut, only saying it will close 300 branches.
As part of its targeted 850 million euros in cost savings, BBVA has said that 450 million euros would be administrative and IT savings, 300 million euros related to job cuts and 100 million euros in funding savings.
The possibility that BBVA could end up with a majority share in Sabadell without an outright merger has prompted questions about whether BBVA can deliver the synergies.
($1 = 0.8938 euros)
(Reporting by Jesús Aguado, editing by Inti Landauro and Louise Heavens)
