Sabadell negotiates the sale of its payment subsidiary. The Catalan bank has recently received several offers for its card business and is evaluating a operation that would be between 300 and 400 million of euros.
As the bank has communicated to the National Securities Market Commission (CNMV) that it is “in a process of analyzing a possible strategic agreement with an industrial partner specialist in the acquisition business”. According to the sources consulted, the entity has received several non-binding offers and is evaluating a possible sale of its payment business.
The operation would be similar to that CaixaBank made with Global Payments. In this way, Sabadell would seek a strategic agreement, by which it would sell the business to an industrial partner, but would maintain the marketing and distribution of products related to payments, mainly credit and debit cards.
It is also the same scheme that Sabadell followed in the sale of the fund manager to Amundi or in the leasing business to ADL in which an exclusive distribution agreement was included.
In the statement to the CNMV, the bank stated that the acquisition business is “one of the pillars of the value proposition for Banco Sabadell customers in the corporate, business and self-employed segment.” In addition, he adds that this ongoing process of analysis has the aim to strengthen competitive advantage and expand its value proposition in this area.
At the beginning of 2022, Sabadell hired Deloitte to initiate a strategic review in its payment subsidiary, in which it contemplated both the sale of the business, the entry of a third party or the possibility of strengthening it with the bank’s resources.
The Reuters agency, which advanced the operation, points out that Sabadell handles three offers: one of the French Worldline, another of the Italian Nexi and a third of the American Fiserv and that the sale is expected to take place in December.
In Spain, Sabadell has a strong presence in the payment business. According to data from Reuters itself, it registered some sales of 21.6 billion euros in the first half of 2022, compared to 15.4 billion in the same period of the previous year. It is a stable and profitable source of income for the bank, since payment operations usually have a higher interest rate than mortgages.