MADRID, Oct 6 (Reuters) - French banking group BPCE has acquired a stake of around 7% in Spanish lender Sabadell through market purchases and financial instruments, with plans to become a long-term shareholder, the two lenders said on Tuesday.
The companies did not disclose the value of the transaction, but at current market prices, a 7% holding in Sabadell is valued at around €1.19 billion ($1.33 billion).
BPCE intends to seek representation on Sabadell's board and does not plan for its shareholding to exceed 9.9%, according to a joint statement.
The acquisition comes at a time when Spain's fourth-largest bank by market value is focusing on a standalone strategy following its sale of TSB in Britain and after it fended off a hostile takeover bid from larger domestic rival BBVA last year, which ultimately failed.
With Sabadell's support, BPCE will begin discussions with Spanish and European regulators regarding the appointment of a director, subject to approvals.
($1 = 0.8917 euros)
Reporting by Jesús Aguado; Editing by David Latona
Source: Reuters