Catalan competition contradicts the CNMC: the BBVA-Sabadell merger puts SME lending at risk.
The Catalan Competition Authority (ACCO) warns that the merger of both banks will result in a "considerable" concentration in Catalonia.
BarcelonaBBVA's takeover bid for Banc Sabadell continues to provoke controversy. June.
In an assessment released this Friday regarding a transaction over which it has no jurisdiction, the ACCO states that the commitments made by BBVA and endorsed by the CNMC "do not rule out all potential risks to competition. In particular, they may not be sufficient to rule out the risk of a worsening of trading conditions for SMEs."
In its assessment, this body, which reports to the Ministry of Economy, highlights that the operation, if it goes ahead, could imply "a significant change in the market structure of the banking sector in Catalonia." In its opinion, it would mean "a notable increase in the existing degree of concentration—which is already high at the moment." This would affect retail banking and payment services. And that, it adds, "could imply a significant reduction in competition in the banking sector in Catalonia."
to companies, deposits, or ATMs. BBVA is currently the second-largest banking operator in Catalonia and Sabadell the third.
As it did a year ago, the ACCO warns that in the case of Catalonia, both in the area of branches, credit, and deposits, the sum of the two entities would far exceed the maximum levels used by the European Commission to detect excessive concentration.