You can now participate in the public consultation on the takeover bid for Sabadell: where and how to do so

MadridThe "public consultation" on BBVA's takeover bid for Banc Sabadell, announced by Spanish Prime Minister Pedro Sánchez, will be open from Tuesday, May 6th, until May 16th, as reported by the Ministry of Economy. This consultation will allow "citizens, associations, and organizations" to provide their opinions through comments and observations on the proposed operation by BBVA, which could lead to the demise of the Vallecas-based bank. These are the details:

Open from this Tuesday

The consultation opens within the 15-day window the Ministry of Economy has to decide whether to submit the takeover bid to the Council of Ministers (the clock starts ticking this Tuesday because the Competition Authority (the Competition Authority) did not register the decision until Monday). It will be open from this Tuesday, May 6, and will run for seven business days, thus, until May 16, as reported by the Ministry of Economy. The process ends before the 15-day window so the ministry can process all the information. You can participate through from this open form on the ministry's website.

Sources from the Ministry of Economy explain that this is a procedure in line with regulations and is usually "common," although they acknowledge that this is the first time it has been used in a hostile takeover bid (not pre-negotiated) such as the one affecting Banc Sabadell. In fact, in the case of the merger between CaixaBank and Bankia, this option was never considered, although that operation directly involved the State as Bankia's majority shareholder.

Who can participate?

As stated on the form, "representative organizations and individuals and legal entities potentially affected by the transaction" are eligible to participate. The National Commission on Markets and Competition (CNMC) is a benchmark for analysis. In general terms, with the exception of competitors in the banking sector, who see the transaction as an opportunity to expand their business, the transaction has been widely criticized by a broad base of society. "The transaction between BBVA and Banco Sabadell." If the answer is yes, a series of further questions are displayed. Otherwise, the questionnaire is terminated. Sectoral regulations, among others.

Will it be binding?

The opinions received by the Ministry of Economy will be secret and non-binding, so they will not determine the Spanish government's ultimate decision on the takeover bid, although sources from the ministry explain that "they will be useful in making decisions about the operation." "It's about obtaining another layer of information," the same sources indicate.

The consultation comes after the Competition Authority unanimously authorized the takeover bid, but under conditions, including maintaining, only temporarily, the financing that Catalan SMEs have with Sabadell. This means that while it has detected multiple problems, the agency believes it has "resolved" them with the commitments required by BBVA. Therefore, it is a step forward in the takeover bid and leaves its progress in the hands of the Spanish government.

Reasons of general interest

Once the ministry has all the opinions, the Minister of Economy, Carlos Cuerpo, will have to decide whether to submit the takeover bid to the Council of Ministers, a step that, prior to Sánchez's announcement this Monday, the financial sector took for granted. Once the takeover bid reaches the Council of Ministers, the Council has one month to decide whether to accept the Competition Authority's ruling or modify it with additional commitments.

Should the latter option be chosen, the harshness of the new commitments could shake BBVA's plans. However, these cannot be linked to a competition issue, but rather to a matter of general interest. In any case, the public questionnaire announced this Monday gives Pedro Sánchez's administration another tool to justify its final decision, even if any of the interested parties in the operation decide to challenge their position in court.