CNMV accepts BBVA’s takeover bid for Banco Sabadell to process

BBVA Takeover Bid about him Sabadell Bank keep going. National Securities Market Commission (CNMV) accepted for processing on Tuesday authorization request BBVA Takeover Bid about him Sabadell Bank, with which the Basque company wants to gain control of the Catalan company for its subsequent merger. As the stock market regulator himself said, permission to process this request does not imply any statements regarding the resolution regarding the authorization of the offer or any conditions thereof, which must be drawn up in accordance with the time limits and other requirements.

CNMV will not approve the proposal until it receives approval European Central Bank (ECB)as stated in the Solvency Act of 2014. On May 24, BBVA formally submitted the request. hopes to receive CNMV approval to an operation in which he proposes to Sabadell shareholders an exchange of securities at a rate of one from BBVA for every 4.83 from the Catalan bank. From then on, CNMV had a total of up to 14 working days to accept the transaction for processing, which ended the following Thursday, although it did not need to accelerate the deadline.

The stock market regulator had previously warned that Verification of information may take more than two months. before greenlighting the takeover bid and awaiting ECB approval, which is strictly necessary. Once the transaction has received regulatory approval, BBVA may submit a takeover bid even if the Competitor has not expressed an opinion or imposed conditions.

If BBVA follows through with its offer, it will have to provide Sabadell shareholders period of 15 to 70 days to decide whether to sell their titles. If the offer is successful and BBVA has more than half of Sabadell’s shareholders willing to sell, the bank may put forward its final idea of ​​merging both companies, which will be subject to the conditions set by the CNMC and at the discretion of the Ministry of Economy.

Since BBVA announced its takeover bid for Sabadell, The government publicly opposed to the operation, and Economy Minister Carlos Bodi, who rejected the proposal, warned that the final say on the merger rested with the executive branch and, in particular, with him.