BBVA changes tone of takeover bid and invites Sabadell shareholders to dialogue | Companies

BBVA is trying to change the tone of its takeover bid for Banco Sabadell. The bank, chaired by Carlos Torres, who in recent months has stressed that from his point of view the Catalan bank’s proposal is not hostile, has launched a new advertising campaign in which it addresses its rival’s shareholders directly and invites them to a dialogue on the topic: “What could this be our new bank?

Part of the battle between BBVA and Sabadell is in advertising: advertising on television, radio or at bus stops. The Catalan organization was the first to strike in response to the proposal, launching a campaign under the slogan “The power of choice.” In it, he refers to competition problems, mainly in the field of small and medium-sized businesses. BBVA responded with the question “What kind of bank does the world need now?”, in which it stated that it is a firm that, throughout its history of more than a century, has been able to help society overcome the problems it faces and now stands as a firm. the ideal brand to solve environmental and technological problems compared to other smaller brands.

Now BBVA is changing direction. In the new announcement, the bank’s own shareholders share their vision of the strengths that the new venture will have in terms of business complementarity, technology investment, global competitiveness or team. Finally, they confirm that the union will allow both banks to compete more confidently by combining complementary businesses and having “the best management team.”

The move by BBVA comes just a week after it suffered the first blow in the takeover process, when the National Markets and Competition Commission (CNMC) decided to move the takeover review to a second stage, meaning subjecting the deal to harsher conditions. a review that includes government intervention (which is directly opposed to the deal) and also extends the deadline until the spring. BBVA expected the deal to be approved in the first phase and approximately six months after its launch, a date that occurred on November 7.

In this way, the bank of Basque origin seeks to give the impression that it is committed to dialogue. Also emphasize that the final decision on whether the bid will go ahead ultimately rests with Banco Sabadell shareholders, who will have to decide whether or not to participate in the takeover bid.

However, we still have to wait for this. The National Securities Market Commission (CNMV) is expected to wait for a competition ruling to greenlight the operation. There will then be a period of 15 to 70 days during which Sabadell shareholders will have to decide whether or not to participate in the offer.

Of course, BBVA can still refuse if they feel the competition terms are too harsh. CEO Onur Genç has repeated this idea several times in recent weeks: if the terms “affect the value creation” of the offer, they will not hesitate to withdraw the offer.