The Spanish National Commission on Markets and Competition (CNMC) has approved, with conditions, the acquisition of Banco Sabadell by BBVA, paving the way for the government to express its stance on the transaction and possibly tighten conditions for its completion.
BBVA responded to the decision by stating that it believes the commitments made will benefit credit to small and medium-sized enterprises (SMEs), particularly in Catalonia.
Carlos Torres, President of BBVA, emphasized that the commitments to the Spanish Competition Authority promote financial inclusion, territorial cohesion, and credit to SMEs and self-employed individuals.
In contrast, Banco Sabadell expressed disappointment in a statement, arguing that the methodology used to assess the merger of banking businesses for SMEs is inadequate and does not allow an understanding of the consequences for these clients.
The Competition Authority’s green light for the deal is subject to the fulfillment of certain commitments or conditions. The decision is not final until the Minister of Economy, Carlos Cuerpo, decides whether to present the issue to the Council of Ministers.
Given the government’s initial opposition to the transaction, it is assumed that the issue will be taken to the Council of Ministers within the 15-day deadline stipulated by law. However, BBVA remains confident that the CNMC’s conditions will address the government’s concerns.
From the Spanish executive’s side, the first Vice President and Minister of Finance, María Jesús Montero, noted that it is still premature to predict the executive’s decision regarding BBVA’s takeover bid for Sabadell.
Conversely, the second Vice President and Minister of Labor and Social Economy, Yolanda Díaz, believes that the government should suspend BBVA’s takeover bid for Banco Sabadell.
The Catalonian government president, Salvador Illa, stated that they will thoroughly review the CNMC report on BBVA’s takeover bid for Banco Sabadell to “act consistently, defending the interests of Catalonia above all.”
Meanwhile, trade unions have expressed regret over the authorization of this takeover bid. The General Secretaries of UGT and CCOO, Pepe Álvarez and Unai Sordo, urged the government not to proceed with it, stating it would harm workers, the sector, and citizens’ interests.
“I believe we must prevent Spain from continuing down a path of financial concentration that is counterproductive to the interests of workers, financial institutions, citizens’ access to financial services, and company interests,” lamented Sordo during a press statement at the Labor Day demonstration.
BBVA initiated the takeover bid for Sabadell nearly a year ago, aiming to integrate the Catalan bank into its group and achieve savings of 850 million euros over three years.
The CNMC explained in a statement that the potential acquisition of Sabadell by BBVA presents a threat to competition in retail banking and payment services markets.
However, the Competition Authority believes these risks would be mitigated by BBVA’s commitments, which the bank described as “unprecedented.”
