Spain’s BBVA Remains Optimistic About Hostile Takeover of Sabadell

BBVA’s chief executive officer, Onur Genc, expressed confidence on Wednesday that the Spanish bank’s hostile takeover bid for smaller rival Sabadell will soon gain approval from competition authorities. Genc indicated that the process, which has been under scrutiny, is nearing its conclusion and should be finalized within the coming weeks, according to Reuters.

In November, Spain’s antitrust regulator initiated a phase 2 review of BBVA’s all-share offer for Sabadell, a deal valued at over €12 billion ($12.64 billion) in April. This review is expected to extend into 2025, a delay that has been compounded by opposition from the Spanish government.

However, Genc remains optimistic that the deal will receive a green light from the competition authority shortly. “Our conviction is that the competition authority will give the green light to the process in the next few weeks… we’re very close to the end of that process,” he stated, according to Reuters.

Related: Spanish Regulators to Decide Fate of BBVA’s 12.28 Billion Euro Sabadell Bid

To facilitate the approval of the acquisition, BBVA has submitted an unprecedented list of remedies aimed at addressing potential regulatory concerns. This proactive approach underscores the bank’s commitment to overcoming any hurdles that might arise in the final stages of the approval process.

In addition to approval from the competition authority, BBVA’s planned takeover also requires clearance from Spain’s market regulator, CNMV. However, the CNMV has made it clear that it will wait for the government’s stance before making any decisions regarding the authorization of the takeover prospectus, per Reuters.