Spanish Government Plans Public Consultation on BBVA-Sabadell Merger Amidst Hostile Takeover Claims
Prime Minister Pedro Sánchez announces a public inquiry into the merger, eliciting responses from industry leaders and regulatory authorities.
On Monday, May 5, 2025, in an address at the annual meeting of the Cercle d'Economia, Spanish Prime Minister Pedro Sánchez announced plans to launch a public consultation aimed at gathering opinions from business associations and citizens regarding the effects of the proposed takeover of Banco Sabadell by BBVA, which Sánchez characterized as a 'hostile' bid.
This initiative is intended to assess the merger's implications amid concerns expressed by various business organizations and labor unions about its potential to limit competition in the banking sector.
Sánchez's announcement comes in the wake of the National Commission for Markets and Competition (CNMC) granting approval for the merger with specific commitments due to identified risks associated with the consolidation.
The Prime Minister indicated that, although the government is not obliged to intervene, he plans to present the matter at the Council of Ministers following the public consultation, which he anticipates will yield unfavorable feedback regarding the takeover.
This government initiative to seek public input on a merger within the banking sector is unprecedented in Spain.
Sánchez recognized the significant opposition to the merger, particularly in Catalonia, where many businessmen and economists have voiced concerns about the implications of the deal.
Notably, Jaume Guardiola, the president of the Cercle d'Economia and former CEO of Banco Sabadell, is among those who have expressed apprehension.
In addition to discussing the merger, Sánchez pressed the business associations CEOE and Foment for their support of the 'Reducción de Jornada' law, which aims to reduce working hours.
He emphasized that the legislative proposal aligns with societal demands and could enhance business performance by benefiting workers.
During the event, attendees included influential figures such as Josep Oliu, president of Banco Sabadell, who described Sánchez's announcement as 'positive.' Sánchez also acknowledged the presence of several prominent Catalan business leaders and executives of government-controlled companies.
In response, Carlos Torres, president of BBVA, distinguished the CNMC's decision as unnecessary for governmental intervention.
He conveyed his utmost respect for both Sánchez's initiative and the CNMC's findings while advocating for the merger as a means to create a stronger banking institution better positioned for future challenges.
Torres underscored the significance of the merger at a critical juncture, echoing Sánchez's sentiment that Europe must enhance its competitiveness.
Torres highlighted that the CNMC's comprehensive study had yielded substantial commitments that not only ensure competitive viability but also promote social inclusion, regional cohesion, and support for small and medium-sized enterprises (SMEs) and freelancers, particularly in Catalonia.
Sanchez emphasized that governmental intervention is permissible only for 'general interest' reasons, separate from competition concerns, which the CNMC has already addressed with their agreement with BBVA.
This initiative is intended to assess the merger's implications amid concerns expressed by various business organizations and labor unions about its potential to limit competition in the banking sector.
Sánchez's announcement comes in the wake of the National Commission for Markets and Competition (CNMC) granting approval for the merger with specific commitments due to identified risks associated with the consolidation.
The Prime Minister indicated that, although the government is not obliged to intervene, he plans to present the matter at the Council of Ministers following the public consultation, which he anticipates will yield unfavorable feedback regarding the takeover.
This government initiative to seek public input on a merger within the banking sector is unprecedented in Spain.
Sánchez recognized the significant opposition to the merger, particularly in Catalonia, where many businessmen and economists have voiced concerns about the implications of the deal.
Notably, Jaume Guardiola, the president of the Cercle d'Economia and former CEO of Banco Sabadell, is among those who have expressed apprehension.
In addition to discussing the merger, Sánchez pressed the business associations CEOE and Foment for their support of the 'Reducción de Jornada' law, which aims to reduce working hours.
He emphasized that the legislative proposal aligns with societal demands and could enhance business performance by benefiting workers.
During the event, attendees included influential figures such as Josep Oliu, president of Banco Sabadell, who described Sánchez's announcement as 'positive.' Sánchez also acknowledged the presence of several prominent Catalan business leaders and executives of government-controlled companies.
In response, Carlos Torres, president of BBVA, distinguished the CNMC's decision as unnecessary for governmental intervention.
He conveyed his utmost respect for both Sánchez's initiative and the CNMC's findings while advocating for the merger as a means to create a stronger banking institution better positioned for future challenges.
Torres underscored the significance of the merger at a critical juncture, echoing Sánchez's sentiment that Europe must enhance its competitiveness.
Torres highlighted that the CNMC's comprehensive study had yielded substantial commitments that not only ensure competitive viability but also promote social inclusion, regional cohesion, and support for small and medium-sized enterprises (SMEs) and freelancers, particularly in Catalonia.
Sanchez emphasized that governmental intervention is permissible only for 'general interest' reasons, separate from competition concerns, which the CNMC has already addressed with their agreement with BBVA.
Translation:
Translated by AI
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