The Spanish government responds to Brussels' report on legislation used in the takeover bid for Sabadell

MadridThe Spanish government defends its legislation on bank mergers before Brussels. part of which has been used in the context of BBVA's hostile takeover bid for Banc SabadellThis Wednesday, the Ministry of Economy sent a letter to the European Commission defending Spanish regulations, as confirmed to ARA by ministry sources. With this letter, Pedro Sánchez's government responds to the infringement proceedings opened by Brussels in Spain this summer, precisely in the midst of the hostile takeover bid. In fact, Spain had until this October to respond.

The European Commission opened infringement proceedings against Spain for the legislation used to condition the bank transaction. The Commission considers that both the Spanish regulations that grant powers to the Ministry of Economy to rule on the acquisition—primarily the Competition Act—and the Spanish government's decision to submit its assessment to the Council of Ministers contravene EU law, because the Commission deemed the analysis by the National Markets and Competition Commission (CNMC) and the Competition Authority (MC) sufficient. In any case, with these proceedings, Brussels did not intend to intervene directly in the transaction or the decisions of the Spanish government, but rather to compel Spain to reform its legislation. Sources at the Ministry of Economy insist at the ARA (Argentine Antitrust Authority) that Spanish regulations are "compatible" with European laws. The department headed by Carlos Cuerpo also intends to transpose the European capital requirements directive to guarantee "the exclusive competence of the European Central Bank and the Bank of Spain in matters of prudential supervision, without prejudice to the role of other authorities within the framework of their powers, such as the CNMC (National Markets and Competition Commission)." "We trust that today's response will resolve the doubts of the [European] Commission," sources at the Ministry of Economy reiterate.

Brussels opens investigation into Spain over the legislation used against the takeover bid at Sabadell.