GQG sold its shares to BBVA due to controversy over Sabadell takeover bid

Investment firm GQG Partners sold its stake in the Carlos Torres-led company over the summer after warning management that a takeover bid for Banco Sabadell would take too much time and distract them, as well as weaken its exposure to emerging markets (Turkey and Mexico). according to a report published yesterday by the Financial Times.

GQG, which manages approximately $150 billion (almost €138 billion) in assets under management, is one of the largest institutional investment arms of several European banks, so its views and actions regarding the hostile operation undertaken by BBVA against Bank Sabadell are relevant. It is not for nothing that GQG Partners owned 3.09% of BBVA in February 2021, which fell to 2.957% in August 2022, and since then no further changes have been reflected above the 3% threshold required by the CNMV for reporting.

The bank’s largest shareholder is currently BlackRock – one of the largest firms in the global investment industry with $10.5 trillion in assets under management – with 6.8% of the capital; followed by Capital Research with another 5,027%, according to CNMV reports.

The sale to GQG Partners comes as the takeover bid awaits CNMV approval and analysis by the National Markets and Competition Commission (CNMC). The first body has already announced that it will wait to find out the path that the CNMC will take – whether it will analyze it in the second stage or not – in order to decide when it will authorize it on its part, reports Servimedia.

Once permission is received from the CNMV, Sabadell shareholders will have the opportunity to have their say. Meanwhile, its president Cani Fernandez said CNMC’s analysis will take time because it is a hostile takeover attempt. In fact, many analysts don’t expect him to make an announcement until next year, which would jeopardize the Torres-led bank’s exchange rate – a factor that would force North American fund GQG Partners to sell its stake. due to delay in operation over time.

BBVA launched a €12.23 billion takeover bid for its smaller rival in April, which turned hostile in May, taking the offer directly to Sabadell shareholders after the board had previously rejected the bid.

Although the Spanish government does not support the takeover proposal, the European Central Bank gave its approval in September.