Spain’s Antitrust Watchdog Clears BBVA’s Sabadell Bid With Conditions

Spain’s competition authority has given conditional approval to BBVA SA’s €13 billion ($14.8 billion) bid for Banco Sabadell SA, marking a critical step forward in a contentious takeover attempt that has stretched for nearly a year. The decision now shifts the spotlight to the Spanish government, which will have the final say on whether the acquisition can proceed in full, according to Bloomberg.

The green light from the antitrust agency is expected to be announced imminently, per Bloomberg, and comes with a set of strict conditions. While specific terms of the approval have not been disclosed publicly, they are reportedly within the range of what BBVA considers acceptable. The bank had previously warned it might abandon the deal if the regulatory requirements were deemed excessive.

BBVA launched its unsolicited takeover offer for Sabadell in May 2024, drawing immediate backlash from political leaders, regional authorities, and business groups. Resistance has been particularly strong in Catalonia, where Sabadell is based and is considered a major corporate presence. Many critics framed the potential acquisition by a bank from another region as both an economic and cultural encroachment.

Related: Spain’s CNMC Poised to Approve BBVA’s Takeover of Sabadell

Now that the antitrust hurdle has been cleared, the deal faces government scrutiny. As Bloomberg notes, the Spanish government will have 15 days to decide whether to initiate a formal review. If it opts to do so, it will have up to 30 days to deliver a verdict. Though the state lacks the authority to prevent BBVA from purchasing Sabadell shares outright, it can block the legal merger required to integrate the two banks fully.

Should that scenario unfold, BBVA could be left holding a significant stake in Sabadell without operational control—an outcome that would complicate the lender’s strategic aims.

The proposed merger would significantly reshape Spain’s banking landscape by creating a financial powerhouse with enhanced domestic scale and reduced reliance on overseas markets. While BBVA ranks as the country’s second-largest bank by market value, it currently derives around half its earnings from Mexico. Incorporating Sabadell—Spain’s fourth-largest bank and a key player in small and medium enterprise banking—would bolster BBVA’s position at home.

Source: Bloomberg