BBVA I want to buy Sabadellbut not at any cost. There are some red lines This could result in the bank backing down, mainly because the Competition Authority has forced the organization to divest the SME business. Sabadell – what is it technically called cut-. Anything unlikely, but possible anyway.
Chief managers of the company blue bench They have repeatedly made it clear that Sabadell’s SME business is its main attraction, so buying the bank without it would be illogical.
“It wouldn’t make sense to integrate with Sabadell and then downsize it.. Our goal is to grow, especially in the SME segment, where we are significantly increasing our market share, especially in Catalonia. We want keep growing and enhance Sabadell’s commercial and risk management model, especially in the SME and enterprise segments,” he said. Carlos TorresPresident of BBVA, last September at a forum organized by Esade in Catalonia.
And there were two cases when Onur GenchCEO of BBVA, suggests that the bank may abandon the takeover bid if it believes there will be no value creation. Something that speaks directly to SME businesses. He did so two weeks ago during the presentation of the company’s results, and also on Wednesday during his speech at a financial forum organized by Deloitte and ABC.
“If value creation is threatened, we have the option to refuse. We will not hesitate for a second to do this if there is no value creation,” he said on Wednesday when asked about the decision National Commission for Markets and Competition (CNMC) go to step 2 of the operation analysis.
More stringent conditions?
The truth is that this is an extension of the period for consideration of the case does not mean that the conditions that the CNMC will impose will be more stringent than those that would have been offered if the surgery had been approved in Stage 1.
CNMC itself made it clear in its statement on Tuesday: “The opening of the second phase does not predetermine final conclusions what CNMC can achieve in relation to the concentration operation.”
So what is the second stage for? Mainly for three purposes: firstly, to conduct a more in-depth analysis of the operation; second, to give a voice to any of the parties involved, and third, to allow the government to have a say in the terms or remedies.
Not in vain, if the operation is approved at stage 2 with obligations or conditions or is prohibited, will be elevated to the Council of Ministers for him to give his final approval, which would allow the government to impose additional conditions if necessary. This last step would not have taken place if the operation had been approved without any obligations or conditions.either in phase 1 or phase 2.
This last part is the most unpredictablegiven that the government is categorically against takeovers and mergers (this has been publicly reported many times) and can ask for almost anything it wants.
If BBVA comes up with the idea of selling the SME business, the bank will most likely refuse the takeover offer.as her managers have already threatened to do.
However, it must be taken into account that if the CNMC or the government forces BBVA to divest the SME business, some other organization will be forced to buy it, thus the problem of having one less competitor will not be solved
. This makes this option less likely… but not impossible.Sabadell proposed this option from the very beginning. Here’s what he said in an interview with EL ESPAÑOL-Invertia: Cesar Gonzalez-Buenoits CEO, last summer.
It would be “desirable” for a banker to remedies or the conditions imposed “never caused harm to BBVA, but rather resulted in ensure that there is an alternative offer that could provide SMEs with more options“.