The US, France and Portugal have given the green light to BBVA’s bid to acquire Sabadell.

BBVA managed to add new permissions international regulatory and supervisory authorities for their takeover of Banco SabadellThe organization recently learned that it had received the green light for the operation from the Go Council.governors US Federal Reserve SystemThis was reported by sources in the bank.

In addition, in recent days, two other regulators in Europe have approved the acquisition proposed by BBVA. These are the French competition regulator (The Coordination Authority), last 9

BBVA managed to add new permissions international regulatory and supervisory authorities for their takeover of Banco SabadellThe organization recently learned that it had received the green light for the operation from the Go Council.governors US Federal Reserve SystemThis was reported by sources in the bank.

In addition, in recent days, two other regulators in Europe have approved the acquisition proposed by BBVA. These are the French competition regulator (The Coordination Authority), which on July 9 issued a resolution authorizing the potential takeover of Sabadell, as well as its Portuguese counterpart ( Compliance Authority), which finally decided not to oppose the operation on July 10.

In its statement, the Portuguese regulator categorizes BBVA as a group with an “essentially retail” banking business, albeit with investment and corporate banking activities, but developing monetary operations in financial markets. In Portugal, the group operates through a branch, as well as subsidiaries in segments such as real estate (Anidaport) or pension funds (BBVA Fundos), among others.

In all cases, regulators provided Green light for BBVA fileapproving it at the so-called first stage, since the proposed operation does not present any particular complexity, at least in terms of the powers of these national authorities.

Focus on CNMC

Various financial sources insist that one of the most important aspects of BBVA’s takeover bid for Sabadell will be the decision that National Commission on Markets and Competition (CNMC) decide on the potential merger. In the coming weeks, the Spanish regulator will have to decide whether it will finally oppose the merger, giving it the green light in the first stage, or whether it will decide to extend its review and analyze the operation in the second stage due to its particular complexity.

Sources familiar with the situation indicate that those responsible for BBVA have carried out intensive work with CNMC at the pre-notification stage not only to save time (given that in a takeover bid this is an important factor). A dialogue was held with the authorities to determine what conditions (Facilities) must be met to obtain approval of the takeover proposal.

“Buyers can take a proactive or reactive approach, and BBVA has chosen the former,” explains a senior banking official close to the transaction. The bank has “many precedents” from recent merger transactions, such as the CaixaBank-Bankia and Unicaja-Liberbank transactions, which allow the company to anticipate and communicate to the CNMC “the specific commitments it would be willing to make to obtain non-opposition resolution“, Add.

In addition to the CNMC, another important regulatory decision that could affect the takeover bid is the European Central Bank’s authorization. Financial sources indicate that the negotiations between BBVA and the sole manager have been intense and fluid, and that, with the exception of the time needed to complete this type of procedure, the harmony between them has been almost complete, so it is expected that the Frankfurt-based authority will give the green light to the operation without any obstacles in the coming weeks.

Other approvals are also expected, although financial sources say they are of secondary importance in the process. This is the case with the Moroccan antitrust authority. The PRA, the UK banking supervisory authority, will also have to give its approval.