Economy Minister admits that BBVA may retain Sabadell, but without merging

BBVA may become the new owner of Banco Sabadell, but without merging with it. This scenario is “possible”, according to the Minister of Economy, Carlos Bodiein Onda Cero statements.

As such, Body is open to the possibility that BBVA will successfully complete its hostile public takeover offer (OPA) of Banco Sabadell and acquire at least a 50.01% stake, giving it control of the property. However, he insisted that the government reject his merger with an organization of Catalan origin. This would imply a formula similar to the one Banco Santander has maintained with Banesto for many years. It was the owner, but they had supported different brands and strategies over the years.

The head of the Ministry of Economy confirmed the government’s readiness to veto the merger, even if the technical reports are positive. He justified this because his department has a vision that goes “beyond” that of the European Central Bank or the National Markets and Competition Commission. He mentioned the lack of banking concentration and the risks of limiting “financial inclusion” as a result of the formation of a new giant.

The authority thus shows the limits of the executive’s power in this operation. The government cannot stop a hostile takeover because it is a free transaction between the buyer and the shareholders of the acquired bank. What it can do is prohibit the subsequent merger of the two companies under the Banking Supervision Act 2014.

“There are several stages in this process. As for the takeover bid itself, it is in line with other institutions,” Bodie said, referring to the National Securities Market Commission. “As soon as they go ahead with the merger, the decision will be made by the Ministry of Economy.” And “the result of the assessment is rejection,” the successor emphasized Nadia Calvino. But this is at the end of the process. Previously, “it could happen that the acquisition does not lead to a merger”

The body also indirectly confirmed that no decision has yet been made to try, as is tradition, to reach an agreement with the main opposition party on replacing the Bank of Spain, despite the fact that the current governor Pablo Hernandez de Cos,

He leaves his post on the 11th: “There is still time to take stock.” He also did not want to reveal the name of the reserve, although he assured that they would undergo “professional training.”