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Spain’s Antitrust Regulator to Extend Review of BBVA’s Sabadell Takeover

By  |  November 12, 2024
BBVA’s hostile takeover bid for Sabadell has triggered a more in-depth review by Spain’s anti-trust regulator, the CNMC, which announced on Tuesday that the deal will require a phase 2 examination.
This extended review process is expected to delay any final decision until well into 2025 and could lead to tougher conditions for BBVA, which is aiming to create a banking giant with assets exceeding 1 trillion euros ($1.06 trillion).

According to Reuters, the CNMC emphasized that the opening of the second phase does not imply any conclusions about the deal’s ultimate outcome. BBVA launched its unsolicited offer for Sabadell in May, offering over 12 billion euros ($12.8 billion) for the smaller bank. The merger would significantly expand BBVA’s presence in Spain, particularly in boosting lending to small and medium-sized enterprises (SMEs).

Read more: Spain’s Competition Authority Signals Deeper Review of BBVA’s Sabadell Bid

Despite opposition from the Spanish government, the European Central Bank gave the green light to the transaction on September 5. The ongoing review by the CNMC, however, remains a key obstacle for BBVA’s plans to integrate Sabadell and reshape the Spanish banking landscape.

Source: Reuters