BBVA does not rule out withdrawing the takeover bid following the Spanish government's decision.

SantanderBBVA is analyzing the condition that the Spanish government imposed on the hostile takeover bid for Banc Sabadell on Tuesday, and among the decisions it may take, it hasn't ruled out withdrawing the operation. "Within the analysis of this additional condition [of the Spanish government], there are different alternatives, including this one [withdrawing the takeover bid]," said BBVA's general manager in Spain, Peio Belausteguigoitia, this Wednesday within the framework of the summer course organized by the Association of Economic Information Journalists (APIE) and at APIE BBVA.

Likewise, the financial institution hasn't ruled out appealing the decision before the Supreme Court: "It is our duty to keep all alternatives and possibilities [open] within this analysis," indicated Belausteguigoitia. Beyond that, the bank's number three has been very careful with his words: "The government's decision was made yesterday [Tuesday]. Not even 24 hours have passed, and we are analyzing different alternatives," he reiterated. In any case, BBVA doesn't want to delay a process that began more than a year ago any longer than necessary: "We'll know something in the next few days," Belausteguigoitia said.

The condition imposed by Pedro Sánchez's executive means that BBVA can take control of Sabadell—if it decides to continue with the process and more than half of the Valles-based bank's shareholders sell their shares—but it hinders the subsequent merger for at least three years. Specifically, it requires the Bilbao-based bank to maintain "its legal personality and separate assets," as well as "autonomy in the management of its activities."

In the eyes of the Spanish government, this shields issues such as workforce and branch operations: without a merger, the resulting synergies (cost savings), such as branch closures, could not be justified, especially since the requirement to operate autonomously is linked to "maximizing value." Before learning of Sánchez's executive's decision, BBVA estimated the synergies of the takeover bid at €850 million over three years and linked them primarily to the technology sector. The bank maintains that, even without a merger, these synergies would be maintained, something that other voices in the sector question.

In any case, the question remains whether decisions such as possible layoffs or the integration of the two banks' technological platforms could be carried out for reasons unrelated to the merger. "There is only one condition [that Sabadell be managed autonomously]. It is the only condition, and it is the one we are evaluating," indicated the BBVA executive.

Belausteguigoitia did not want to "speculate" on whether the Spanish government's decision is political or economic, although he maintains BBVA's interpretation of the Competition Law, which the Spanish government has used to add a condition to the takeover bid: "We have always defended the [government] intervention that is included in the laws," the executive said when asked if he considered it an excessive decision.

The Generalitat, "satisfied"

However, the reactions to Pedro Sánchez's executive's decision continued this Wednesday, along the same lines as yesterday, Tuesday, when the bank expressed "satisfaction" with the condition imposed on BBVA. The morning of Catalunya Ràdio, Economy Minister Alícia Romero also expressed her confidence that Brussels will "empathize" with the condition. The European Commission, which generally wants more banks, warned on Tuesday that it would withdraw all "unjustified restrictions" on the takeover bid..

The unions, however, have not expressed themselves in the same way. CCOO, for example, considers the Spanish government's condition insufficient: "[The condition] still does not provide sufficient guarantees in economic, social, and labor terms," the union said in a statement released Wednesday.