The Spanish government is preparing to impose additional conditions to approve the hostile OPA proposed by BBVA for 14,000 million euros (16,000 million dollars) on its smallest rival, Sabadell, the newspaper La Vanguardia reported Tuesday, citing anonymous sources.
The conditions, different from those imposed by the Spanish competition control agency when he authorized the operation with corrective measures, would include maintaining the directive structure of Sabadell and the size of the templates of both banks, according to the avant -garde.
He also indicated that measures would affect credit policies and consumer rights.
Madrid cannot stop the OPA, but the new conditions could make BBVA think twice.
The president of BBVA, Carlos Torres, declared that the entity could withdraw its offer by Sabadell if the conditions imposed were too severe or if it is forced to accept the sale of TSB, the British subsidiary of Sabadell.
The Spanish newspaper El País also announced that the Government would harden the conditions of loans to small businesses and avoid drastic job cuts.
Until now, the Government opposed an agreement announced at the end of April 2024 for fear that job losses could cause.
This Tuesday, the governor of the Bank of Spain, José Luis Escrivá, said that this process had been “excessively long” and that shareholders should be given the opportunity to decide on these agreements.
Escrivá also suggested that there could be room for greater consolidation in the sector. Spain does not have the most concentrated banking system in Europe, but it is not at the lowest concentration level, he said.
Do not miss: BBVA warns that I could withdraw the offer by Sabadell if the conditions are ‘too hard’
Spain requires BBVA to keep Sabadell separate for three years
BBVA must keep banks as separate entities for at least three years and protect jobs, as part of the conditions imposed by the Government to the hostile OPA on Sabadell, which could be a setback for their plans.
These conditions differ from the competence criteria applied by the Spanish antitrust control agency when it authorized the operation and subject to various corrective measures.
“The Government has authorized the operation between BBVA and Sabadell in the condition that, for the next three years, maintain separate legal entities and separate assets, as well as autonomy in the management of their activities,” said Economy Minister Carlos Body, at a press conference.
He added that the new entity will have the right to request the merger once the condition established on Tuesday is fulfilled.
According to Spanish legislation, the government cannot prevent BBVA from buying the actions of its objective, but will have the last word later about whether the merger is carried out. The president of BBVA, Carlos Torres, declared that the entity could withdraw its offer by Sabadell if the conditions imposed were too severe or if it is forced to accept the sale of TSB, the British subsidiary of Sabadell.
The analysis of the competition was not definitive until government approval.
Corps explained that the conditions included effective autonomy in decision making on financing for small and medium enterprises, decisions related to personnel, branch network and banking services, and the activities of Sabadell’s foundations.
Madrid had opposed the operation to date due to the risk that it could lead to the loss of jobs.
Banco Sabadell reported the following: “We want to reiterate our confidence in the solidity of our solo project and its ability to generate value for our shareholders.”
With Reuters information
Do you use more Facebook? Let us like to be informed
