US EditionSpain Blocks BBVA From Merging with Sabadell for at Least Three Years
- On June 24, 2025, Spain's government approved BBVA's hostile takeover of Banco Sabadell with conditions requiring separate operations for three years.
- The approval followed competition authority clearance and stems from a leftist government’s concern over job losses and market dominance.
- The conditions mandate BBVA and Sabadell remain distinct legal entities, preserve autonomy in financing, staffing, and branch networks, and retain all current employees to protect public interest.
- Economy Minister Carlos Cuerpo called the terms "proportionate and balanced," aiming to safeguard small and medium-sized business finance, social policies, and territorial cohesion.
- The deal’s viability faces uncertainty as BBVA’s chairman warned the bank might withdraw if restrictions or forced divestment of Sabadell’s UK unit arise, while the government may extend conditions up to five years.
44 Articles
44 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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