The long-stalled hostile acquisition attempt by Spanish banking behemoth BBVA for smaller rival Sabadell was allowed by Spain’s antitrust authority on Wednesday, advancing the development of a new industry titan.
According to the CNMC, BBVA had “submitted pledges that have allowed the authorisation of the operation” despite the risks the planned deal posed to retail banking, payment services, and market competition.
According to a statement from the CNMC, these include maintaining credit lines to small and medium-sized enterprises, keeping a physical presence and commercial conditions in specific areas, and taking further precautions for clients who are considered “vulnerable.”
BBVA, Spain’s second-biggest bank which has an important footprint in Latin America and Turkey, said its commitments “promote financial inclusion, territorial cohesion, and lending to SMEs and the self-employed”.
It also pledged to safeguard competition, “particularly in the regions where our presence will be most significant”, notably the wealthy northeastern region of Catalonia where Sabadell was founded.
BBVA launched the bid in May 2024 but came up against regulatory hurdles and stiff opposition from Sabadell’s leadership, which is determined to maintain the independence of Spain’s fourth-biggest bank.
Although the European Central Bank approved BBVA in September, the leftist government and the Spanish stock market regulator still need to approve it.
The potential emergence of a new European banking giant has previously raised competition concerns for the coalition led by socialists.
The cabinet could evaluate the bid using “criteria of general interest different from the defense of competition,” according to the CNMC, which said that Economy Minister Carlos Cuerpo would determine whether to bring the issue before the cabinet.
They would examine the CNMC report “with rigor and detail” and move with the “utmost prudence,” according to sources from the economy ministry on Wednesday.
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