Josep Oliu, the Chairman of Banc Sabadell, concluded the annual shareholders' meeting in Sabadell on Wednesday, expressing hope that next year's meeting would again be held in the city that gives the bank its name.

However, the ongoing hostile takeover bid from BBVA raises questions about the future of the Catalan bank.

Oliu stated that he is focused on ensuring that shareholders are well-informed about the implications of a potential exchange of shares amidst the acquisition bid.

He emphasized the importance of what shareholders stand to gain or lose if they choose to exchange their Banc Sabadell shares.

The National Commission on Markets and Competition (CNMC) has been urged by various business organizations to conduct thorough market analyses before making a final decision on the takeover.

Oliu expressed concern that a lack of competition would adversely affect the economic landscape in Catalunya and the Community of Valencia, which he considers crucial for the region's business development and welfare.

He highlighted that many businesses have submitted appeals regarding the takeover, signaling that they believe the CNMC should listen to the opinions of those most impacted by the potential reduced competition.

With regards to the potential merger, Oliu noted that while he anticipates an acquisition could occur, the specific conditions remain undetermined.

He suggested that any merger should address competition concerns, especially pertaining to smaller enterprises.

Oliu conveyed his surprise at the CNMC's apparent disregard for the feedback from business organizations affected by competition issues.

He mentioned that various business groups have expressed their desire to communicate their insights concerning the acquisition process and its implications.

He clarified that while the bank has communicated its views on competition to the CNMC, it is ultimately the Commission’s responsibility to formulate their decisions.

Oliu underlined the distinction between merging from five major banks to four and moving from four to three, emphasizing that such reductions could significantly impact credit accessibility for businesses.

As the process unfolds, the National Audience, which has accepted a complaint regarding the merger, could extend proceedings without necessarily causing immediate concern for Oliu.

He reiterated that clarity on whether a merger will happen is essential for shareholders to make informed decisions.

Oliu remarked that the merging of major institutions might not correlate with the needs of the citizens, underlining that the ongoing hostile takeover is not aligned with the interests of Catalunya, particularly as the region seeks economic recuperation post a sluggish period.

He noted that the Sabadell is not only a vital financial entity for Catalunya but also embodies the region’s banking tradition.

The ongoing situation underlines that the Catalan business community is advocating for the preservation of financial institutions, warning that the loss of one will diminish their capacity to secure necessary financial resources.

In discussions regarding his interactions with high-profile government officials, Oliu described his brief exchanges with President Pedro Sánchez and Minister Carlos Cuerpo, indicating that there is no additional information shared beyond what is publicly known.

When queried about the opinions of institutional investors, Oliu stated that many have not yet made definitive decisions, indicating their need for more clarity regarding the risks and potential benefits of either remaining stakeholders in Sabadell or transitioning to BBVA.

Oliu confirmed that reputation risks stemming from ongoing judicial issues could impact shareholders' decisions regarding the takeover bid, asserting that shareholders deserving full disclosure about these matters.

Currently, minor shareholders represent a significant portion of Banc Sabadell's capital, although the exact percentage remains unspecified.

The sentiment among investors appears to be cautious, with many looking for assurances about the bank's future and stability.

Amidst discussions of increasing merger activities in the sector, Oliu conveyed no notable change in the bank’s aspirations or endeavors to explore potential new partnerships, asserting that the core of their operations will remain focused on serving Catalunya's economic landscape.

He mentioned that the focus must remain on fostering a strong local shareholder base and reinforcing the identity of Banc Sabadell as a leader in catalan banking, despite its growing international management team.

Oliu affirmed that the bank's future should prioritize maintaining its socio-economic impact in Catalunya and surrounding regions.