Spain Orders Public Consultation on BBVA’s €13 Billion Sabadell Takeover

The Spanish government will initiate a public consultation process on the proposed acquisition of Banco Sabadell by banking giant BBVA, Prime Minister Pedro Sánchez announced on Monday. The move underscores Madrid’s continued reservations about the deal, even as it cleared a key regulatory hurdle last week.

According to Reuters, made by Sánchez, the consultation will begin on Tuesday with the goal of collecting input from civic organizations and public associations. The prime minister emphasized that the government’s broader objective is to strengthen business competitiveness while safeguarding the country’s collective interest.

The announcement follows last Wednesday’s conditional approval of the merger by Spain’s competition authority, the CNMC. The watchdog gave the green light to the deal but imposed a number of stipulations aimed at maintaining market balance and addressing antitrust concerns.

Related: Spain’s CNMC Clears BBVA’s Bid for Banco Sabadell, With Conditions

BBVA’s offer — a share-based bid currently valued at over €13 billion (approximately $14.7 billion) — has been met with resistance from Sabadell. The Catalonia-based lender, which holds a significant presence in the economically strong northeastern region, has already rejected the proposal.

Per a statement from the government, concerns about the potential impact on competition and employment are among the key reasons for its opposition. Critics argue that a merger of this magnitude could consolidate too much market power in the hands of a single institution and lead to job cuts.

Although Spanish law does not permit the government to block a takeover offer outright, it does grant final authority on whether a merger can proceed. After the CNMC’s approval, the economy ministry has 15 business days to submit the case to the cabinet. Following that, the government has up to a month to issue a formal objection, in what is informally referred to as a “phase 3 review.”

Source: Reuters

Reuters