According to a representative from the bank, no actual decision has been made in relation to the potential merger transaction and there is no certainty as to whether any such decision will be made. So far, the banks have begun due diligence reviews and have appointed advisers, as Reuters reports.

The boards of both banks will decide in December 2020 on whether to proceed with the merge. In a sense, BBVA and Santander are both following regulator guidance. The governor of Spain's central bank has asked banks to consolidate in response to the low profitability of the banking business.

If a BBVA and Sabadell deal goes ahead, the new bank would have nearly EUR 600 billion in assets in Spain. The premium to be paid by the larger BBVA is currently under discussion, as BBVA was not considering a capital increase to fund the deal, which could be in cash or shares.

In recent news, there have been talks about PNC Financial Services’ intention to buy the US business of Spanish banking group BBVA for more than USD 10 billion, according to Reuters.