Spanish Government Initiates Public Consultation on BBVA's Bid for Banco Sabadell
Prime Minister Pedro Sánchez announces a public consultation to gauge public opinion on BBVA's takeover bid, citing the need to uphold 'general interest'.
Prime Minister Pedro Sánchez announced the launch of a public consultation period concerning BBVA's takeover bid for Banco Sabadell during a speech in Barcelona.
This consultation aims to assess the potential advantages and disadvantages of the Basque bank's offensive towards the Catalan institution.
Sánchez emphasized that the government's approval of the bid will depend on whether it aligns with 'the general interest' of citizens.
The Ministry of Economy identified the public consultation as a routine part of legislative practices, allowing concerned associations and citizens to express their opinions.
However, officials acknowledged that it is an unusual procedure for takeover bids or mergers.
The consultation aims to enhance information gathering in the decision-making process regarding the BBVA's acquisition of Banco Sabadell.
According to the Ministry of Economy, the consultation will not alter the established timelines for the bid, adhering to the 15 business days available for the ministry to present its findings to the Council of Ministers.
Responses submitted during the consultation will not have the same legal weight as those put forth during an official review process, where amendments must be incorporated into the regulatory framework, thus carrying more binding implications.
The National Commission on Markets and Competition (CNMC) concluded its comprehensive assessment of the bid from an economic and competitive perspective.
The government now seeks to determine if the transaction respects the broader interests of the public.
Sánchez's remarks were made at the opening of the Cercle d’Economia's annual conference in Barcelona, themed 'Europe, wake-up call', which explores the new geopolitical order and Europe's role in it amidst the unpredictable politics of Donald Trump and the rising influence of China.
Jaume Guardiola, president of the Cercle, highlighted Europe’s vulnerabilities and questioned its aspirations in the global arena.
Despite the official agenda, the focus inevitably shifted to BBVA's hostile bid for Banco Sabadell during Sánchez's address in front of a gathering of business and economic leaders.
In his speech, Sánchez outlined Spain’s strong economic performance before briefly addressing the banking bid.
After his address, there was no detailed inquiry from Guardiola about the specifics of the announced public consultation or its binding nature.
Carlos Torres, president of BBVA, and Josep Oliu, president of Sabadell, were present in the audience.
Torres characterized the operation as a growth initiative aimed at creating a stronger bank capable of future challenges, claiming it would be beneficial for stakeholders in Catalonia, Spain, and Europe.
He expressed 'maximum respect' for the government’s decision-making process.
Oliu provided a succinct remark that it is always positive to question significant issues.
Details regarding the consultation process are expected to be finalized by the Ministry of Economy in the coming days.
Minister Carlos Cuerpo is scheduled to attend the Cercle's conference.
Teresa Ribera, Vice-President of the European Commission, commented on the takeover during her attendance at a different event.
She indicated that the management of national markets falls within the authority of individual countries, thus placing the responsibility for this banking transaction outside the purview of European institutions.
Last week, after the CNMC approved BBVA’s bid, which would create the second-largest bank in Spain, Minister Yolanda Díaz took a firm stance in defense of Banco Sabadell, citing concerns over potential job losses for approximately 5,000 employees.
She criticized the move as a 'major error' that disregards the economic, social, cultural, and union fabric of Catalonia.
During the day, before Sánchez's arrival at the Congress Palace, Josep Sánchez Llibre, president of Foment del Treball, called for the government to halt the BBVA takeover, expressing concerns that it could result in a loss of €70 billion in credits to the Spanish productive sector.
Llibre urged the government to consider strategic and territorial interests, referencing a last-minute study by the Catalonian business association that highlights the projected reduction in credit due to the merger.
He expressed dissatisfaction with the CNMC's resolution as 'insufficient, disappointing, inappropriate, and hasty'.
This consultation aims to assess the potential advantages and disadvantages of the Basque bank's offensive towards the Catalan institution.
Sánchez emphasized that the government's approval of the bid will depend on whether it aligns with 'the general interest' of citizens.
The Ministry of Economy identified the public consultation as a routine part of legislative practices, allowing concerned associations and citizens to express their opinions.
However, officials acknowledged that it is an unusual procedure for takeover bids or mergers.
The consultation aims to enhance information gathering in the decision-making process regarding the BBVA's acquisition of Banco Sabadell.
According to the Ministry of Economy, the consultation will not alter the established timelines for the bid, adhering to the 15 business days available for the ministry to present its findings to the Council of Ministers.
Responses submitted during the consultation will not have the same legal weight as those put forth during an official review process, where amendments must be incorporated into the regulatory framework, thus carrying more binding implications.
The National Commission on Markets and Competition (CNMC) concluded its comprehensive assessment of the bid from an economic and competitive perspective.
The government now seeks to determine if the transaction respects the broader interests of the public.
Sánchez's remarks were made at the opening of the Cercle d’Economia's annual conference in Barcelona, themed 'Europe, wake-up call', which explores the new geopolitical order and Europe's role in it amidst the unpredictable politics of Donald Trump and the rising influence of China.
Jaume Guardiola, president of the Cercle, highlighted Europe’s vulnerabilities and questioned its aspirations in the global arena.
Despite the official agenda, the focus inevitably shifted to BBVA's hostile bid for Banco Sabadell during Sánchez's address in front of a gathering of business and economic leaders.
In his speech, Sánchez outlined Spain’s strong economic performance before briefly addressing the banking bid.
After his address, there was no detailed inquiry from Guardiola about the specifics of the announced public consultation or its binding nature.
Carlos Torres, president of BBVA, and Josep Oliu, president of Sabadell, were present in the audience.
Torres characterized the operation as a growth initiative aimed at creating a stronger bank capable of future challenges, claiming it would be beneficial for stakeholders in Catalonia, Spain, and Europe.
He expressed 'maximum respect' for the government’s decision-making process.
Oliu provided a succinct remark that it is always positive to question significant issues.
Details regarding the consultation process are expected to be finalized by the Ministry of Economy in the coming days.
Minister Carlos Cuerpo is scheduled to attend the Cercle's conference.
Teresa Ribera, Vice-President of the European Commission, commented on the takeover during her attendance at a different event.
She indicated that the management of national markets falls within the authority of individual countries, thus placing the responsibility for this banking transaction outside the purview of European institutions.
Last week, after the CNMC approved BBVA’s bid, which would create the second-largest bank in Spain, Minister Yolanda Díaz took a firm stance in defense of Banco Sabadell, citing concerns over potential job losses for approximately 5,000 employees.
She criticized the move as a 'major error' that disregards the economic, social, cultural, and union fabric of Catalonia.
During the day, before Sánchez's arrival at the Congress Palace, Josep Sánchez Llibre, president of Foment del Treball, called for the government to halt the BBVA takeover, expressing concerns that it could result in a loss of €70 billion in credits to the Spanish productive sector.
Llibre urged the government to consider strategic and territorial interests, referencing a last-minute study by the Catalonian business association that highlights the projected reduction in credit due to the merger.
He expressed dissatisfaction with the CNMC's resolution as 'insufficient, disappointing, inappropriate, and hasty'.
Translation:
Translated by AI
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