Spain’s Banco Sabadell has called on the government to provide more transparency about BBVA’s takeover bid. Josep Oliu, Sabadell’s Executive Chairman, stressed the need for clarity at the annual shareholder meeting in Alicante. Oliu said Sabadell wants to stay a national player and does not plan to compete globally.
The bank thinks retail investors will not tender their shares in the possible takeover. Sabadell has asked BBVA to give an alternative proposal that looks at potential risks with the acquisition. The request for transparency and a new proposal shows Sabadell’s careful position on the deal, aiming to protect its stakeholders’ interests.
Meanwhile, BBVA’s CEO Onur Genc is confident that the bank’s hostile takeover bid for Sabadell will soon be approved by competition authorities. Genc said the process, which has been under review, is close to ending and should be done in the coming weeks. In November, Spain’s antitrust regulator started a phase 2 review of BBVA’s all-share offer for Sabadell, a deal worth over €12 billion.
Sabadell seeks clarity on BBVA bid
This review is likely to go into 2025, a delay made worse by the Spanish government’s opposition. However, Genc is optimistic that the competition authority will approve the deal soon.
To help get the acquisition approved, BBVA has given an unprecedented list of remedies to address possible regulatory concerns. This proactive approach shows the bank’s commitment to overcoming any obstacles in the final stages of the approval process. In addition to approval from the competition authority, BBVA’s planned takeover also needs clearance from Spain’s market regulator, CNMV.
However, the CNMV has said it will wait for the government’s position before deciding on authorizing the takeover prospectus. BBVA has been expanding in emerging economies to boost income. One reason to buy Sabadell is to reduce BBVA’s exposure to markets like Mexico and Türkiye.
The CEO projected that the bank could achieve a net profit of 2.5 billion to 3 billion euros in the next two to three years if inflation keeps going down.
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