Sabadell attacks Competition and appeals to the government before its most decisive meeting

BarcelonaBanc Sabadell celebrates again this Thursday A shareholders' meeting in Catalonia after eight years and it does so in a climate of fierce confrontation with the National Commission of Markets and Competition (CNMC). The Catalan entity arrives at its annual meeting with shareholders at a decisive moment due to the hostile takeover bid presented by BBVA in May of last year, which could lead to its demise.

After years ofexile In Alicante, Sabadell will seek this Thursday a breath of fresh air in the form of support from its small shareholders (approximately 50% of its capital) in an event that will be used to question the method used by the Competition Authority when deciding to what extent a possible merger with BBVA is harmful to customers. This was made clear this Wednesday night with a dinner in Barcelona, ​​​​where both Josep Oliu, president of the bank, and César González-Bueno, CEO, attacked the CNMC.

"We think it's a shame. If this were the case, it truly seems to us that there is a competition problem and that remedies "are insufficient," said González-Bueno on the small conditions that Competition will impose on the second phase operation, as is widely rumored in the sector. The CEO wanted to be more explicit: "The operation endangers well-being in Spain because it affects 70% of the productive fabric and does so irreparably; once the competition disappears, this hole cannot be repaired."

Oliu, in turn, criticized an operation that "is a great opportunity for competitors": "I feel bad and I don't like it," he said. Oliu was explicit in asking the central government to stand up against the takeover: "The CNMC is doing its job, which is to ensure competition, and the government is doing its job, which is to ensure the common good and the future of Spain." In his opinion, Pedro Sánchez's executive has arguments for this."He must ensure the balance of the country's financial system," the Catalan financier declared. His chief executive expressed similar sentiments: "There is a common good, and someone should create the conditions to preserve it."

Anti-OPA argument

Speaking to the press, Oliu was able to rehearse some of the arguments he will be able to explain to the bank's shareholders in what is expected to be an act of vindication. "Sabadell shareholders think they have a stake in a Spanish bank, not in other countries," he said, referring to BBVA's strong presence in Mexico and Turkey. "We compete in Spain, and there are large companies in Catalonia and Spain that started with a loan from Sabadell that they received when no one would give them even a dime," he recalled. "We've had a negative premium for a month, and that speaks for itself," he added.

Regarding a possible improvement in the offer by BBVA, which the markets consider very likely, Oliu recalled that BBVA has stated on numerous occasions that it has no room to do so. However, he wanted to be clear. "An improved offer may not improve the offer for Banc Sabadell shareholders, because if they offer more money, the markets could react negatively and it could affect BBVA's stock," he noted.

Catalonia and the conditions for returning

The veteran Catalan financier also wanted to address the long-awaited return of the company's headquarters to Catalonia, which took place at the end of January after seven years with its headquarters in Alicante. "I don't know what the conditions were for returning, but I know they were right. The stars were in favor of doing something I've wanted to do for a long time, and you know the bank is from Sabadell, and I'm from Sabadell," he explained.