Brussels approves BBVA’s takeover bid for Sabadell
On Tuesday, the European Commission approved the takeover bid submitted by BBVA for Sabadell, financial sources confirmed to the outlet. On October 21, the European Commission began a review of the BBVA operation on the island of Sabadell. The procedure is structured in such a way that the European Commission does not give the green light to the operation as such, but rather, if any violations are discovered, it begins an in-depth investigation of the operation. Given that the European Commission did not announce the opening of the second stage of the procedure on the day of the deadline, this Tuesday, this means that the purchase has passed the test of the Community Executive.
The assessment in Brussels aimed to ensure that the takeover bid was not supported by subsidies from third countries. The European Commission launched this review with the aim of avoiding distortions of competition in the single market. Brussels’ decision, which was expected by both banks, represents a procedure that will not entail any changes in the takeover process, as Sabadell recalled in a letter he sent to its shareholders on November 13.
Thus, the organization chaired by Carlos Torres received another approval after the European Central Bank confirmed its non-opposition to the operation last September, which coincided with the assessment of the report that the Bank of Spain sent to Frankfurt last July.
However, the decision of the Competition two weeks ago to transfer the study of the transaction for consideration Phase II deadlines were extended. According to the National Markets and Competition Commission (CNMC), the process could be open to third-party charges and eventually even government involvement.
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