Competition and BBVA finalize commitments in the takeover bid for Banc Sabadell

BarcelonaThe clock is ticking, and the Competition Authority's ruling on BBVA's takeover bid for Banc Sabadell is entering its decisive phase. Financial sources indicate that the CNMC's ruling on the transaction will be made public in early April (probably on the 7th, 8th, or 9th of next month). This review is in its second phase, following the agency's November decision. did not give it the green light in phase 1, in a decision that boosted the Catalan bank's prospects.

What's coming from the Competition Authority isn't as positive for the Catalan bank right now. Financial sources have explained in recent weeks that the Competition Authority refuses to conduct a market study with SMEs to see to what extent the productive fabric might be affected.

Sabadell, and virtually all employers' and business organizations in Catalonia and other regions, demanded this test be conducted, and have expressed their anger to one degree or another: "What the CNMC is doing is like that of a consumer protection association, but it's not acting as a Competition authority," they lamented.

The system that Competition is applying is exactly the one that was applied in the operation between CaixaBank and Bankia, but Sabadell and the business organizations argue that the situation is different now, firstly, because there is one less bank and, secondly, because in this case the impact on companies is much more noticeable than in two operators of the 20.

According to publication Expansion This Thursday, Competition and BBVA are currently negotiating the remedies or measures to cushion the impact of the transaction on customers in two specific areas: SMEs and potential financial exclusion. Sources consulted by ARA indicate that both parties are "discussing these commitments because the most recent ones presented in the bank's fourth proposal were not sufficient for the competition authority."

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If this scenario of the operation approved in phase 2 is confirmed, with commitments that in no case would require drastic measures (such as the sale of a business area), the operation will enter its final phase. First, the Ministry of Economy must consider opening a third phase for analysis. Theoretically, this analysis by the government lasts a month, but in recent days there has been speculation that it could be extended for several months. The decision the government could adopt is to prevent the merger between the two banks, which would prevent BBVA from obtaining the synergies that would follow the workforce reductions that accompany these operations.

Once the government has expressed its opinion, if BBVA maintains the takeover bid, Sabadell shareholders would have to decide whether or not to approve it. Until now, it was speculated that the vote would take place throughout July, but if the government extends its analysis, it may not take place until September.