A PYMNTS Company

Spain’s Economy Ministry to Scrutinize BBVA’s Attempted Sabadell Takeover

By  |  May 27, 2025

Spain’s government has initiated its own evaluation of BBVA SA’s takeover proposal for Banco Sabadell SA, introducing a new layer of scrutiny even after the country’s competition authority conditionally approved the deal, according to Bloomberg.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Ministry of Economy announced on Tuesday that it now has 30 days to review the bid and issue a decision. While the central government lacks authority to prevent BBVA from acquiring shares in Sabadell, it does retain the power to block the merger from being legally finalized. This could significantly impact BBVA’s ability to implement changes at Sabadell, particularly in areas such as workforce reductions and operational restructuring.

    Per Bloomberg., this move follows a public consultation process and represents another hurdle for BBVA’s unsolicited bid, which was launched over a year ago. The management team at Sabadell has consistently resisted the takeover, going so far as to explore alternative strategic options, including a potential merger with a smaller banking entity.

    Related: Spanish Antitrust Chief Says BBVA-Sabadell Merger Won’t Stifle Competition

    The Spanish Prime Minister, Pedro Sánchez, previously characterized BBVA’s approach as “hostile,” signaling the broader political sensitivity surrounding the deal. Opposition has also emerged from regional leaders, labor unions, and business associations, particularly in Catalonia, where Sabadell is headquartered.

    BBVA, formally Banco Bilbao Vizcaya Argentaria SA, announced its offer for Sabadell in May 2024. The bid has been under intense scrutiny since its inception. While the national competition authority, the CNMC, approved the deal in April, it imposed conditions requiring BBVA to preserve certain branch operations and continue providing favorable terms and credit access for small and mid-sized businesses.

    Source: Bloomberg