The CNMC gives the 'green light' to the purchase by BBVA of 659 branches from Merlin for 2,000 million euros

MADRID, 3 Jun. (EUROPA PRESS) -

The National Commission of Markets and Competition (CNMC) has authorized in the first phase the operation by which BBVA acquires from Merlin Properties a portfolio made up of 659 branches and three buildings currently rented from the financial institution for an amount close to 2,000 million of euros.

The favorable resolution of the CNMC council occurred last Wednesday, June 1, a week after the notification about this operation entered, according to the records of the Competition portal.

The assets included in this portfolio are integrated into the company Tree Inversiones, which is made up of 659 branches and 3 buildings leased to BBVA under a long-term contract, 30 years for the branches (2039) and 20 for the buildings (2029), with a total area of ​​approximately 298,000 square meters distributed throughout the national territory, with a presence in 268 municipalities and 49 provinces.

In 2014, Merlin bought Tree Inversiones from Deutsche Bank, Banca March, Ares Management and Europa Capital for 739.48 million euros. Previously, this company belonged to BBVA, but it was sold in 2009 for 1,154 million euros and with a gross capital gain of 830 million euros.

Thanks to this operation, Merlin Properties will distribute an extraordinary dividend of 315 million euros to its shareholders, some 65 million euros more than the amount initially calculated, a figure that meets the requirements established by Spanish law in these cases, specifically the 50 % of the increase in the value obtained, a payment that will have to be made before June 2023.

In addition to the payment of the extraordinary dividend, the company will dedicate 700 million euros of the amount collected to the cancellation of a loan derived from this portfolio, so it will have another 970 million cash generation to reduce debt.

Specifically, after undertaking all these operations, the socimi's debt will go from 5,247 million euros to 3,610 million, with an average cost of debt of 1.94%, compared to the current 2.07%, and the 'loan to value' --relationship between debt and the value of its assets-- at 32%, in contrast to the current 39.2%.

For BBVA, this operation is also beneficial because it will give it greater flexibility in the management of its branch network and will generate significant economic savings in a context of rising inflation, since it had to pay the rent to the socimi with a clause that required to adjust the rent annually at 1.5 times inflation until 2039, when the contract ended.

The entity estimates that these advantages will offset the negative effect that the operation will have on its accounts, which will translate, specifically, into an initial consumption of 7 basic points of capital and an initial net impact of 200 million euros.