BBVA's Pursuit of Banco Sabadell Gains CNMC Approval Amid Government Scrutiny
The National Commission of Markets and Competition (CNMC) has granted conditional approval for BBVA's potential acquisition of Banco Sabadell, a significant development that may have broader implications for the banking landscape in Spain. The decision comes after a lengthy meeting, wherein the Competition Chamber, which includes CNMC president Cani Fernández, reached a unanimous verdict, as confirmed by sources close to the proceedings.
However, the approval is not without conditions. The CNMC has made it clear that this ruling is not final, pending a decision from Economy Minister Carlos Cuerpo. Given the Government's previous opposition to this merger, many experts believe that the minister is likely to elevate the matter to the Council of Ministers within the stipulated fifteen-day timeframe.
In a strategic move linked to this acquisition, BBVA has lowered the acceptance threshold for its takeover bid. This adjustment means that BBVA will no longer need to acquire 50.1% of Banco Sabadell's total capital for the merger to proceed. Instead, the focus shifts to securing more than half of the effective voting rights, effectively excluding Sabadell's treasury stock from consideration.
BBVA initiated its takeover bid for Banco Sabadell nearly a year ago, aiming to integrate the Catalan bank into its operations and achieve projected savings of €850 million over a three-year period. However, Sabadell's CEO, César González-Bueno, has publicly doubted the feasibility of these savings without a merger.
As the process unfolds, the next major step involves obtaining approval of the bid document from the National Securities Market Commission (CNMV). This approval is essential to opening the acceptance period for shareholders of Banco Sabadell, who will then be able to decide whether to accept BBVA's offer of €0.70 in cash along with one share of BBVA for every 53.456 shares of Sabadell.
This acquisition bid not only reflects BBVA's ambitions in the competitive banking sector but also raises questions about future regulatory challenges and government intervention in significant financial mergers. As this situation develops, stakeholders are urged to remain informed and vigilant, particularly as firms navigate potential shifts in economic policy and market dynamics.
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