Brussels approved BBVA’s takeover bid for Sabadell without objection

The European Commission has decided to give the green light to BBVA’s takeover proposal (OPA) of Banco Sabadell and its possible merger in the context of the new foreign investment framework created by the European Union against the risk that investments from third countries. According to Europa Press, this could create distortions in the domestic market and undermine fair competition in the European economic area.

Notification of the operation was sent to Brussels on October 21, and the deadline was extended until November 26. Community Services had to determine whether an “in-depth investigation” needed to be initiated or the merger could proceed without further review by the community executive. Finally, Brussels chose the second option.

That is, the Brussels competition authority decided not to investigate activities under this new foreign investment framework. This was not an ordinary concentration permit, since from this point of view it is being studied at the national level.

In Spain, the National Commission of Markets and Competition (CNMC) has decided to move to a second stage of review of the operation due to its impact on consumers, who are expected to accept the purchase offer before mid-2025.

Since 2023, the European Union has had a Foreign Subsidies Regulation (FSR), which requires companies to provide the European Commission with details of foreign subsidies received three years before the new common framework comes into force.

In particular, the regulation establishes that Brussels must be notified of those transactions in which any of the companies is established in the EU and generates at least 500 million euros of turnover on the Community market, as well as if the companies received from third countries in three countries In previous years, the total financial contribution exceeded 50 million euros.

In the announcement of the takeover bid for Sabadell sent to the National Securities Market Commission (CNMV), BBVA has already indicated that it will submit a notification to the European Commission to study the risk of investments from third countries, but clarified that the effectiveness of the operation is not subject to the condition of obtaining this authorization.