The public consultation aims to gather opinions from organizations, citizens, and associations, aiding the Spanish Government in making a decision “with all guarantees” regarding the hostile takeover bid launched by BBVA for the Catalan bank Sabadell, Prime Minister Sánchez stated at an event in Barcelona.
Sabadell opposes the takeover bid, and both the Government of Spain and the regional government of Catalonia have expressed reservations about the merger of the two Spanish banks.
The National Commission on Markets and Competition (CNMC) of Spain authorized the transaction last Wednesday, albeit with certain conditions imposed.
In a statement, the CNMC explained that the potential acquisition of Sabadell by BBVA poses a threat to competition in retail banking and payment services markets.
However, the Competition Commission believes that all these risks would be mitigated by commitments undertaken by BBVA, which the bank described as “unprecedented.”
It is now up to the Spanish Government to decide whether to present the transaction to the Council of Ministers for evaluation, potentially tightening the requirements of the takeover bid under the principle of the general interest.
The public consultation, beginning on Tuesday, will serve to “make this decision with all guarantees,” said the Prime Minister today, addressing an audience of Catalan entrepreneurs.
The Government has 15 days from the CNMC’s opinion to decide whether to intervene in the transaction by imposing new requirements.
Besides political parties and governments, the BBVA takeover bid has been criticized by about 70 business associations and unions.
The Spanish Competition Law of 2007 stipulates that conditions imposed by the Government should be duly justified by reasons of public interest distinct from competition, such as national security, environmental protection, or promoting innovation, for example.
There is no precedent for the Spanish Government having tightened conditions for a merger.
The president of BBVA, Carlos Torres, stated on Thursday that the ‘remedies’ assumed by the bank before the Spanish competition authority promote financial inclusion, territorial cohesion, and credit access for small and medium-sized enterprises (SMEs) and independent workers.
Sabadell regretted in a statement that the authority used a methodology to analyze the merger of SME banking businesses that is inadequate and, therefore, does not allow for an understanding of the consequences this merger has for these clients.
On the Spanish executive side, the first Vice-President of the Government and Minister of Finance, the socialist María Jesús Montero, stated on Thursday that “it is still premature” to know what decision the executive will make regarding BBVA’s takeover bid for Sabadell.
The second Vice-President of the Government, Minister of Labor and Social Economy, and leader of the leftist party Somar, Yolanda Díaz, said that the Government should suspend the takeover bid.
The president of the Catalan Government, the socialist Salvador Illa, assured that the Government will thoroughly analyze the CNMC’s report to “act coherently, defending the interests of Catalonia above all.”
BBVA launched the takeover bid nearly a year ago.
