The decision by the bank led by Carlos Torres comes a week after Sabadell shareholders almost unanimously approved the sale of its British subsidiary, TSB, to Santander for 2.65 billion pounds (3.05 billion euros).
The European Commission has initiated infringement proceedings against Spain regarding the legislation that allowed the government to influence the merger of BBVA and Sabadell banks, the European executive announced on July 17.
Brussels “urges Spain to comply with EU banking regulations” and “respect the fundamental freedoms of the single market,” according to a statement from the Commission, announcing “infringement proceedings” against the country for breaching several community rules and a European treaty.
The Spanish government announced on June 24 that it authorizes BBVA’s takeover bid for Sabadell if the two banks maintain separate legal entities, assets, and management for three years.
Spanish Economy Minister Carlos Cuerpo stated the same day that the government’s decision, approved in the Council of Ministers, is based on the necessity to protect “general interest” principles, provided for in Spanish legislation and supported by the jurisprudence of the European Union courts.
The acquisition of the Catalan Sabadell by the Basque bank BBVA, through a hostile takeover, was authorized by Spain’s competition authority at the end of April. However, the Spanish government could still invoke “general interest” principles and intervene in the process by imposing further conditions on the operation, which occurred.
