Spanish Political Party PP Rejects BBVA's Hostile Bid Without Job Security Guarantees
Concerns raised over potential job losses and competition reduction in the banking sector.
The Popular Party (PP) in Spain has made it clear that it will not support BBVA's hostile takeover bid for Banco Sabadell unless new guarantees are provided regarding potential job losses.
The party's economic spokesperson, Juan Bravo, emphasized the importance of competition in the banking sector and raised concerns about the impact of the takeover on employment.
During a press conference on May 6, 2025, Bravo stated, "We are not in favor of excessive concentration.
We believe that more competition is beneficial." He highlighted the necessity of understanding the number of job losses that may occur as a result of the takeover, asserting that the nature of job losses—whether it is a few or thousands—will influence the PP's position.
Initial estimates indicated that up to 4,000 employees might be laid off as a result of the merger.
Amid reports, BBVA has pledged to reevaluate the workforce cutbacks following a report from the Spanish National Commission on Markets and Competition (CNMC) that gave its approval for the offer, contingent upon commitments that protect customer interests.
However, even if the number of potential job cuts were lowered to 3,000, the PP has maintained its stance against the takeover in its current form, citing clear reservations.
Catalan representatives within the PP have explicitly voiced their opposition not only due to the job losses but also because the merger would reduce the number of banking options available to consumers, thereby affecting competition.
National party leadership echoed this sentiment, noting that several requirements still need to be met before they could reconsider their position.
According to Juan Bravo, the discussion surrounding the takeover should focus on management rather than political considerations.
He asserted that the priority should be to ensure that Spaniards have the best possible conditions, particularly for small and medium-sized enterprises (SMEs) and self-employed individuals.
The party has expressed that should the guarantees stipulated by the CNMC be fulfilled, they would be willing to review their stance in coordination with the government.
Key guarantees sought by the PP include requirements for BBVA to avoid closing branches unless there is another office within 300 meters, restrictions on closures in areas with low per capita income, and commitments to maintain competitive conditions for individual customers, SMEs, and the self-employed in postal codes with limited competition.
Furthermore, BBVA has been tasked with creating a no-fee account for vulnerable customers from both Banco Sabadell and BBVA, along with providing a free debit card.
The PP has also expressed opposition to the public consultation announced by Prime Minister Pedro Sánchez, intended to gather feedback from business associations and citizens regarding the effects of the proposed acquisition.
The Catalan branch of the PP insists on minimizing concentration within the financial sector to promote accessibility and competitiveness.
The party's economic spokesperson, Juan Bravo, emphasized the importance of competition in the banking sector and raised concerns about the impact of the takeover on employment.
During a press conference on May 6, 2025, Bravo stated, "We are not in favor of excessive concentration.
We believe that more competition is beneficial." He highlighted the necessity of understanding the number of job losses that may occur as a result of the takeover, asserting that the nature of job losses—whether it is a few or thousands—will influence the PP's position.
Initial estimates indicated that up to 4,000 employees might be laid off as a result of the merger.
Amid reports, BBVA has pledged to reevaluate the workforce cutbacks following a report from the Spanish National Commission on Markets and Competition (CNMC) that gave its approval for the offer, contingent upon commitments that protect customer interests.
However, even if the number of potential job cuts were lowered to 3,000, the PP has maintained its stance against the takeover in its current form, citing clear reservations.
Catalan representatives within the PP have explicitly voiced their opposition not only due to the job losses but also because the merger would reduce the number of banking options available to consumers, thereby affecting competition.
National party leadership echoed this sentiment, noting that several requirements still need to be met before they could reconsider their position.
According to Juan Bravo, the discussion surrounding the takeover should focus on management rather than political considerations.
He asserted that the priority should be to ensure that Spaniards have the best possible conditions, particularly for small and medium-sized enterprises (SMEs) and self-employed individuals.
The party has expressed that should the guarantees stipulated by the CNMC be fulfilled, they would be willing to review their stance in coordination with the government.
Key guarantees sought by the PP include requirements for BBVA to avoid closing branches unless there is another office within 300 meters, restrictions on closures in areas with low per capita income, and commitments to maintain competitive conditions for individual customers, SMEs, and the self-employed in postal codes with limited competition.
Furthermore, BBVA has been tasked with creating a no-fee account for vulnerable customers from both Banco Sabadell and BBVA, along with providing a free debit card.
The PP has also expressed opposition to the public consultation announced by Prime Minister Pedro Sánchez, intended to gather feedback from business associations and citizens regarding the effects of the proposed acquisition.
The Catalan branch of the PP insists on minimizing concentration within the financial sector to promote accessibility and competitiveness.
Translation:
Translated by AI
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