From mockery to risk of bank consolidation: Catalan reactions to the Sabadell takeover bid

BarcelonaThe main Catalan employers' associations, the Generalitat (Catalan government), and small shareholders of Banc Sabadell have warned of the dangers posed by BBVA's takeover bid for the Catalan bank, which was authorized this Friday by the National Securities Market Commission (CNMV). The Catalan government, through the Minister of Economy, Alícia Romero, has warned of the risk of banking concentration, although she has shown her respect for the final outcome of the operation once the acceptance period ends.

In a message through her X account, the minister said: "The Government will monitor how the takeover bid develops and we will respect, as expected, the decisions made by the Banc Sabadell shareholders, who now have the floor." "We have warned of the risk of a banking concentration, but we are convinced that the measures taken by the Council of Ministers guarantee the protection of the general interest," the minister added. The Minister of Economy, Carlos Cuerpo, made a similar statement this morning from Barcelona.

The Minority Shareholders Association of Banc Sabadell, chaired by Jordi Casas, considered the offer made by BBVA in its takeover bid prospectus to be "offensive" and accused the entity, chaired by Carlos Torres, of wanting to gain control of the Catalan bank at a "reduced price." In a statement, the association argued that BBVA, in the prospectus, "has not even deigned to update its offer" by leaving the original price unchanged. "This means paying around 10% less than the market value of the shares on the stock market," the minor shareholders argued, before going on to accuse BBVA of carrying out "an obvious attempt to buy on the cheap."

They also indicated that the Basque bank "wants to enter through the back door." "Aware that it will not reach 50 percent of the capital, BBVA reserves the option of lowering the threshold to 30 percent, thus aiming to control the bank without involving half of its shareholders," they stated.

The reaction of the Catalan employers' association for large companies, Foment del Treball, has been similar. Its president, Josep Sánchez Llibre, reaffirmed his rejection of the takeover bid and, in statements to the media, called it "a complete joke" and an "absurdity" for the Catalan bank's shareholders. The president of Foment del Treball emphasized that "what BBVA wants" is for "Banc Sabadell shareholders to understand that they are buying hard currency for four pesetas."

For his part, the president of Pimec (the employers' association for small and medium-sized businesses), Antoni Cañete, appealed to the "conscience" of Banc Sabadell shareholders, who must decide on the takeover bid. Cañete addressed shareholders: "You may see an improvement in the share price, if applicable, but perhaps the day you go to seek credit you will encounter difficulties," he said, after assuring them that they will respect the shareholders' decision. The president of the Catalan employers' association reiterated his opposition to the takeover bid due to the competition issues it poses and the potential financing difficulties for SMEs.