Oliu warns against possible merger between BBVA and Sabadell




President of the Bank SabadellJosep Oliu warned this Monday in London about possible “negative impact” in the small and medium business segment possible merger with BBVA if the proposal made to shareholders is implemented.

“An increase in the relative size of an institution in a market inevitably leads to great oligopolistic powerto the detriment of consumers,” Oliu said during a dinner at the Spanish Chamber of Commerce in the UK, which he attended as guest of honor.

Oliu emphasized in his speech that Sabadell and BBVA “they offer more value individually than together”and that “destroying a bank that itself creates value” will harm the market.

Continental Banking Union

Regarding the future of European banking consolidation, Oliu said a continental banking union is a goal that has not yet been realized, but he believes it is “desirable” and will eventually become a reality.

“Today we have obstacles that work against them, such as the lack of a European deposit insurance system, and the European Council must urgently address this problem,” he said.

banking union This is a necessary step to improve the resilience of the European system and should facilitate cross-border mergers, Oliu added, citing “tax diversity” and regulatory differences between European regions as other important obstacles to integration.

“When domestic consolidation reaches its limits due to competition, the necessary aspects such as strength, size and technological capability can be achieved through cross-border operations to create stronger and larger banks,” he said.

While banking consolidation can help strengthen the financial system, “it is not always good,” Sabadell’s president warned at the same time, and does not always create value for shareholders.

If the consolidation process occurs “as a result of a vision that can be shared and accepted by the various players involved, as well as employees, customers, the community and politicians, the value will be enhanced,” he said. Otherwise, he added, “the value will be at risk.”

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