Sabadell will be “paralyzed” for more than six months due to a debt of passivity
BBVA’s new attempt to take over Banco Sabadell will see the Catalan division paralyzed for more than half a year due to the obligation of passivity required by the takeover process. This part of the rule requires that the directors of the company, in this case the board of directors, as its maximum expression, not take any action that could be considered to interfere with the functioning of these characteristics. According to BBVA estimates, which were communicated to the market yesterday, this situation could last more than six months.
Thus, in addition to what he cannot accomplish, Sabadell operations that change its perimeter are prohibited -in addition to those that have already begun, such as the case of the sale of its payment subsidiary Nexi-. Thisany defensive movement from Josep Oliu’s bench will lead to failure and Cesar Gonzalez – Okay.
In addition to legal obligations, as is usually the case in other merger cases (without the need for hostility), there is a risk that the company’s attention is diverted from business to other types of tasks, which leads to the loss of part of the expected flows or established plans. In this sense, financial sources point out to elEconomista.es that the need for Sabadell to focus on the business at this time is key, not only to comply with the plan set for its shareholders, but also because of its importance in the field of small and medium-sized businesses.
It is worth remembering that 2024 and 2025 will see one of the most important rollouts of European funds. In this sense, and also taking into account the role of banking in general, the reality that Sabadell will experience in the coming months is key, since Catalan education hasthe market share of SMEs was 12.7%, even higher than Sabadell’s 11.5%. This client segment will be one of the focal points for the above-mentioned European funds and therefore the freeze could directly impact their performance.
Financial sources point out to elEconomista.es that in Europe there has always been a system of mutual understanding and stability between the various financial institutions, which is also preached by the European supervisory authority, the European Central Bank (ECB). This meant that for many years, mergers carried out in the financial market of the Old Continent were friendly or based on the fact that one of the two parties involved had some problems going it alone without affecting the financial market. system.
The government can still veto the operation
The government has a weapon to stop BBVA’s hostile takeover of Banco Sabadell in the form of an additional provision. Legislative reform carried out by the government under the Banking Supervision Law introduced a mechanism for supervising strategic transactions between financial institutions, which now means that the Ministry of Economy has the final say. This process occurs at the last stage of processing the hostile proposal after receiving approval from various regulatory authorities.