Spanish government opposes BBVA’s $13 billion Sabadell bid

By Jerry  Published On May 9, 2024
MADRID/BARCELONA, May 9 (Reuters) – Spain’s government opposes BBVA’s (BBVA.MC), opens new tab hostile takeover bid for its smaller rival Sabadell (SABE.MC), opens new tab, Economy Minister Carlos Cuerpo said on Thursday.
Under Spanish law, the Economy Ministry has the power to block any merger or acquisition of a bank. The government has six months to decide after consulting with regulators including the Bank of Spain and the securities regulator CNMV.
BBVA, Spain’s second-largest bank, on Thursday presented a 12.23 billion euro ($13.11 billion) takeover bid directly to Sabadell’s shareholders after its target’s board earlier this week rejected the proposal on the same terms.
Cuerpo said the government considers the combination of the two banks would have potentially harmful effects on the Spanish financial system and would impact jobs and customers.
“We are right now, both in form and substance, rejecting this operation as a consequence of those potential negative effects it could have,” Cuerpo said in an interview on TVE. “We have the last word when it comes to authorizing the merger by absorption by BBVA with Sabadell and that is where we would come in, of course, to make this assessment.”
Source: REUTER

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