Spanish Antitrust Chief Says BBVA-Sabadell Merger Won’t Stifle Competition

In remarks delivered Tuesday, Fernandez addressed growing concerns surrounding BBVA’s €14 billion ($15.55 billion) hostile takeover offer for Sabadell, emphasizing that the proposed merger would not significantly undermine competition within the financial sector. Her comments follow the CNMC’s approval of the transaction last month, subject to certain conditions aimed at safeguarding market balance.

According to Reuters, Fernandez pointed to the presence of other strong players in the market, such as Caixabank, as a reason why the acquisition would not create a monopoly. She noted that in the domain of small and medium-sized business lending, several other institutions are active, providing alternative options for consumers.

“There is sufficient activity in the area of small and mid-sized lending, with other operators already in place to accept commitments,” she said, underscoring the diversified nature of Spain’s banking sector.

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

Per Reuters, Fernandez further highlighted Sabadell’s declining market share in its core region of Catalonia, where its dominance in small-business lending is being challenged by competitors — notably Caixabank — rather than BBVA. This, she argued, reinforces the notion that BBVA is not Sabadell’s closest rival in key segments.

The Spanish government, however, has openly opposed BBVA’s bid, citing concerns over potential job cuts and regional economic impacts. Despite the regulatory green light from the CNMC, Madrid has maintained its reservations, aligning with Sabadell’s own rejection of the offer.

BBVA’s goal is to form Spain’s second-largest bank by total loans, trailing only Caixabank. While the merger would significantly reshape the country’s financial landscape, regulators insist that consumer choice and lending competition would remain intact.

Source: Reuters