Daily Brief Financials: Banco De Sabadell SA, Martin Currie Portfolio Invest and more

• The CNMC is expected to approve the deal with mild remedies, reducing regulatory uncertainty; however, a potential Phase 3 review by the government could delay timing and introduce political risk.
• Sabadell’s standalone defense is robust, anchored in increased dividends, buybacks, and 14%+ RoTE guidance, which have helped reposition the bank as a viable independent alternative in the market.
• The offer’s gross spread has turned negative, reflecting investor skepticism about deal success or expectations of an improved offer; the lack of a premium currently weakens BBVA’s negotiating leverage.

Effective from 16 April 2025, Franklin Global Trust (FRGT) is the new name for the Martin Currie Global Portfolio Trust. The trust’s manager Zehrid Osmani, who has been in place since October 2018, and his team are transitioning to Franklin Equity Group, which should further enhance its research capabilities. FRGT’s team and investment strategy remain unchanged. At the end of February 2025, Franklin Equity Group had more than $137bn of assets under management. Its focus on high-growth sectors including technology and healthcare should be a good fit for FRGT’s approach of seeking innovative companies with long-term growth potential. The board recently announced a reduction in the trust’s fee structure, which it believes will ensure the ongoing charge remains competitive and will increase shareholder value.