Spain’s Financial Regulator Awaits Antitrust Decision on BBVA’s Hostile Bid for Sabadell

Spain’s stock market regulator, CNMV, has announced it will delay its decision on approving BBVA’s takeover prospectus for Sabadell until the competition watchdog concludes its in-depth review of the deal, according to comments from CNMV chief Rodrigo Buenaventura reported by Reuters.

The proposed all-share acquisition, valued at over €12 billion ($12.64 billion) as of April, is undergoing a prolonged “phase 2” antitrust investigation, which could extend into 2025. The bid has faced resistance from Sabadell’s management and opposition from the Spanish government, Reuters noted.

“With the information we have and the expected calendar that is being considered, we believe that the most appropriate approach is for us to approve the bid once the conditions from the antitrust analysis are known, as it is important information for the offer’s recipients,” Buenaventura explained.

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

While the European Central Bank approved the deal on September 5, the antitrust review by Spain’s CNMC could impose stricter conditions on BBVA, potentially requiring concessions. This process might also give the government a chance to intervene and mandate remedies, Reuters highlighted.

Under Spanish law, the government cannot block a takeover bid but retains the authority to decide whether a merger can proceed. Although the CNMV is legally permitted to greenlight the prospectus before the CNMC completes its review, this would force Sabadell shareholders to decide on the offer without full knowledge of its terms.

Source: Reuters