BBVA and Sabadell or how to accept a takeover offer out of boredom

There are many ways to get rid of a takeover bid, but by far the most effective is to put it off until the person making it gets tired and goes home. This is the strategy of the government and the CNMV, this time using the CNMC. Yesterday, the Competition Chamber of the National Markets and Competition Commission (CNMC) agreed to move the concentration operation between BBVA and Banco Sabadellwhich will include new research and analysis in depth which, at best, will end with a resolution in 2025.

In a statement, the CNMC said that “taking into account the circumstances of the operation and its potential impact on the maintenance of effective competition, the Competition Chamber decided, in accordance with Article 57.2.c) of Law 15/2007 of July 3, Protection of Competition, to deepen the analysis of the case on second stage of the procedure.

Go deeper, says the CNMC, because “the economic sector affected by this operation is the financial sector, especially banking and payment services” and, in addition, “the parties are simultaneously present in the market for the production and distribution of insurance services, in pension funds.” and plans in the asset management market. Well, if after four months CNMC has realized that the takeover bid is affecting payment services and the insurance market, it is because they deserve to be hired by Agatha Christie to collaborate with Hercule Poirot in her new novel From Heaven.

CNMC’s decision was supposed to be made a month after the takeover bid was announced, but that month turned into the fourth. In these meetings in the second phasethe deadline is three months, but you already know that the Competition skips these deadlines wherever it wants. It is appropriate to recall that in the two previous banking concentrations – CaixaBank with Bankia and Unicaja with Liberbank – the decision was made by the CNMC in the first stage. But of course there were other players and, above all, the government, which was opposed to this takeover proposal from the first minute, can continue to set new conditions thanks to the Minister of Economy and the Council of Ministers.

So what now? BBVA said it “will continue to work closely with CNMC to finalize the commitment agreement and approve the file as soon as possible.” That is, what will you think about if you throw in the towel? When they announced their takeover bid, they gave themselves a period of six to eight months to get all the approvals, and at the moment they have nothing.

Due to his absence, even the National Securities Market Commission (CNMV) has not approved the takeover bid launch brochure since its president. Rodrigo BuenaventuraI wanted to wait for the decision of the Competition. Now he can wait in his new international position and let whoever comes take the lead… if BBVA still wants to fight everything but free markets.