US EditionSpain Blocks BBVA From Merging with Sabadell for at Least Three Years
SPAIN, JUN 24 – The Spanish government requires BBVA and Sabadell to operate independently for three years and protect 43,000 jobs, delaying integration and merger plans after the hostile takeover approval.
- Spain's government approved BBVA's €11 billion hostile takeover of Banco Sabadell in June 2024 under strict conditions preventing merger for at least three years.
- The approval followed CNMC's April 30 green light conditioned on BBVA's commitments to avoid anti-competition risks and a public consultation launched in May 2024.
- The government mandated both banks maintain separate legal entities, assets, autonomous management, and no staff cuts or branch changes during this period to protect jobs and services.
- Economy Minister Carlos Cuerpo described the terms as "proportionate and balanced" to safeguard small business finance, workforce, social policies, and territorial cohesion.
- BBVA's chairman Carlos Torres warned BBVA might withdraw the bid if conditions prove too restrictive, including forced divestment of Sabadell’s UK subsidiary, with a government review planned six months before the deadline.
49 Articles
49 Articles
BBVA/Sabadell merger green light, but…
The Spanish government has rubber-stamped the proposed merger between BBVA and Banco Sabadell but with strict conditions that could jeopardise its financial viability, forcing both banks to operate independently for at least three more years. When they finally come together, they will form the biggest bank in Spain. The Council of Ministers, led by Economy Minister Carlos Cuerpo… Source
The financial institution will have to pay 619 euros plus legal interest, after several unfair terms of the mortgage loan have been partially cancelled.
Now the dossier returns to the examination of the board of Bilbao that will have to evaluate whether to withdraw the offer or continue also without the synergies of cost previewed in case of aggregation
It could extend the condition established for two more years and while it is in force, no dismissals or "processes" involving a reduction of templates linked to the operation can be carried out.
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