Sabadell's Strategic Shift: A Catalan Renaissance

Spanish bank Sabadell is considering returning its headquarters to Catalonia, a move seen as a boost for the region. This follows years of political turmoil and signals increased stability. The decision has been in the works for months, aiming to counter a hostile takeover by BBVA and restore investor confidence.

In a strategic turn, Spanish bank Sabadell is contemplating relocating its headquarters back to Catalonia, a move viewed as a potential economic boon for the region, remarked Socialist regional leader Salvador Illa on Wednesday. The plan to move from Alicante back to Catalonia is on the agenda for an upcoming board meeting. Sabadell has urged investors to oppose a hostile takeover bid by BBVA, emphasizing the bank's crucial role in Catalonia's economy.

Should Sabadell make this move, it would mark the first major firm to return since numerous companies left after the failed independence bid in October 2017. Illa acknowledged the move as a positive step towards stability, adding, "This confirms we are on the right path towards institutional stability and legal security." The idea to relocate originated within the bank without political influence, according to sources.

The proposal comes amidst easing market tensions that arose from past independence efforts. Sabadell moved its headquarters due to concerns over Catalonia's potential secession from Spain. The potential return could signal a broader corporate comeback, according to Josep Sanchez Llibre, head of Catalonia's largest business lobby. Analyst Nuria Alvarez described the move as a strategic "chess game" for Sabadell to gain political favor against a merger with BBVA.

(With inputs from agencies.)