Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) and Banco de Sabadell SA have discussed the terms of a merger but the negotiation turned out to be short-lived since both the parties disagreed on what exchange rate to set. This lead to a decreased of 7 cents to 93 cents on 6.125% of Sabadell’s 2022 bonds.

The talks announced by Banco Bilbao Vizcaya Argentaria SA come days after it made millions of Euros in cash by selling its business in the United States. Before it was considering the option of investing in growth projects or share buybacks. However, negotiations were unsuccessful since both banks could not agree on the price.

To control the pandemic, international travel bans and lockdowns have been imposed which have severely impacted Spain resulting in a rapid decline in tourism, an industry the economy heavily relies upon. To come out of this repressive state, the country has shifted its focus to carrying out several mergers in the banking sector to boost its economy. It has not only aided in improving the financial system of Spain but of the whole of Europe too.