"This is how we build a country," the Minister of the Presidency declared immediately after the news of the failure of BBVA's takeover bid for Sabadell was made public. Undoubtedly, the outcome is positive for Catalonia, and politics has undoubtedly also had a lot to do with it.
The news is positive because one of the causes of Catalonia's worsening economic situation is the progressive disappearance of decision-making centers, especially as a result of the takeover of local companies by foreign, foreign, or Madrid-based companies.
Politics has had a lot to do with it. On the one hand, because the Spanish government has made it clear that it didn't like the operation and has thrown every spoke in the wheel it could; on the other, because civil society has also made its rejection clear. The third factor that has defeated BBVA's offer has been Sabadell's management, which has put up not only energetic but also intelligent resistance.
The story isn't over, however. From the outset, both banks emerge weakened. BBVA, because it hasn't been able to correct the weakness of its balance sheet, which is excessively concentrated in Mexico and Turkey; Sabadell, because after the sale of TSB, it is smaller and therefore more vulnerable. Furthermore, banking concentration is a sign of the times: because the banking market offers significant economies of scale and because the European project demands larger banks. Even if national governments are doing so, it will become increasingly difficult to obstruct transnational merger projects. Both managements, therefore, have reason to feel insecure.
