Pedro Sánchez Surprises Business Leaders with Public Consultation on BBVA's Hostile Takeover Bid for Sabadell
At the annual meeting of the Cercle d'Economia in Barcelona, a key gathering of Catalonia's economic elite celebrating its 40th edition, President Pedro Sánchez made headlines with an unexpected announcement. He revealed that the government would initiate a public consultation regarding BBVA's hostile takeover bid for Banco Sabadell, a decision that has intrigued and divided leaders in the business and political spheres of Catalonia.
This year's meeting was especially charged, following a year since BBVA's bid was first introduced. Just a week before Sánchez's speech, the National Commission of Markets and Competition (CNMC) had given the green light for the takeover, effectively leaving the decision in the hands of the government. This situation was fraught with tension, as many stakeholders in Catalonia felt their concerns were overlooked by the regulatory body.
Sánchez's announcement of a public consultation served multiple purposes. Firstly, it symbolically aligned him with business associations and entities that had expressed dissatisfaction with the CNMC's ruling. The takeover bid has faced opposition from around 70 organizations, including trade unions, employer associations, and chambers of commerce—highlighting a significant resistance from the economic community.
Secondly, the public consultation shields Sánchez from backlash should the Council of Ministers make an unpopular decision later on. By relying on public sentiment, he can argue that the decision was based on collective input rather than political motives, a strategy that reflects careful political maneuvering. "Sánchez has been very clever; I don’t think there will be an OPA," remarked a satisfied businessman who holds shares in Sabadell.
Interestingly, the leadership at Banco Sabadell, including president Josep Oliu, responded positively to the decision, suggesting it might mitigate concerns regarding the takeover. Conversely, BBVA's chief Carlos Torres expressed his maximum respect for the process, illustrating a contrast in responses from the two banks.
In the broader political arena, the response from the Popular Party (PP) was surprisingly non-confrontational. Deputy secretary Juan Bravo indicated that they would oppose the operation without guarantees but did not present a stark challenge to Sánchez over the matter. This departure from confrontational rhetoric suggests a rare moment of alignment among business leaders across political lines.
Despite the surprising halt on outright opposition from various political entities, it remains clear that the government retains the power to influence the outcome by imposing stricter operational requirements in the name of territorial cohesion. This scenario could allow BBVA to acquire Sabadell, yet maintain both as separate entities, which many believe is essential for preserving market competition.
The Generalitat, represented by Minister Alicia Romero, expressed satisfaction with the government's approach. In their view, Sánchez's decision underscores a commitment to the economic health of Catalonia, a sentiment echoed by prominent business figures including Josep Sánchez Llibre of Fomento del Trabajo Nacional and Antoni Cañete of Pimec. Both leaders see Sánchez's initiative as a step in the right direction, albeit cautioning that the situation is still fluid.
As this high-stakes drama between BBVA, Sabadell, and the Spanish government unfolds, stakeholders remain on edge, anticipating how the public consultation will shape the future of banking in Catalonia.
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