BBVA-Sabadell: Feijóo launches a hostile takeover bid for Sánchez's office

BarcelonaIt remained to be known the opinion of the leader of the PP, Alberto Núñez Feijóo, after the Spanish Prime Minister, Pedro Sánchez, announced yesterday at the Annual Meeting of the Círculo de Economía in Barcelona that he would launch a public consultation on BBVA's takeover bid for Sabadell before making a decision. And he did not waste the opportunity to criticize the initiative, which was well received by a segment of the Catalan business community, which is largely opposed to the merger that would leave Catalonia without the headquarters of a major bank. Drawing a parallel with the case of both entities, we could say that the Popular Party leader has launched a hostile takeover on Sánchez's initiative.

Without being categorical about the operation between BBVA and Sabadell – "My personal opinion is irrelevant," he said – he attacked the planned measure and wondered why the executive doesn't submit decisions that, in his opinion, are much more fundamental, such as the increase in defense spending, to consultation. The opposition leader has stretched the bubble towards what he has been repeating since the last general elections: "If we want to be serious, we will have to consult in an election [to determine what citizens want]," he concluded.

According to Feijóo, the consultation on a business concentration is "a frivolity unbecoming of a eurozone economy." In his opinion, it is the Spanish government that must make the decision once the National Commission on Markets and Competition (CNMC) has issued its unanimous resolution, including a series of conditions regarding credit for SMEs and others. From Feijóo's words, some concluded that he considers the operation a done deal, while others believe the battle is still ahead. In any case, the PP leader has defended banking competition, just as he did a year ago at this same meeting.

Subsequently, the Minister of Economy, Carlos Cuerpo—one of the first members of the Spanish government to oppose the operation almost a year ago—has also defended this initiative at the Círculo's Annual Meeting. He tried to downplay the issue by saying that it's not about saying yes or no to the takeover bid, in a consultation in which individuals and associations can participate until May 16.

In fact, Cuerpo jokingly said: "I know you like referendums, but that's not one of them." It's about individuals and companies having their say on matters of general interest, he specified. The minister dismissed all criticism of a procedure not provided for by law and asserted that it is an initiative "fully aligned with the regulations." In any case, he certainly hasn't convinced Feijóo or many others who fear that such a sudden and surprising change in the rules could affect potential investments and business operations.