Santander believes banks will “continue to compete very fiercely” despite BBVA’s takeover bid.

The bank appears unwilling to object to the possible disappearance of a competitor in Spain. Santander CEO Hector Grisi said on Tuesday that “the market is extremely competitive” and that it will remain so despite BBVA’s takeover bid for Banc Sabadell.

“I think not, we are going to continue to have very tough competition,” the manager assured when asked during a banking meeting organized by Expansión whether the takeover bid would change the level of competitiveness in the Spanish market.

The impact on banking competition is one of the most controversial issues surrounding the project to integrate BBVA with Sabadell. While the first argues that the market share of the resulting enterprise will not exceed 25%, the second warns of a reduction in supply, especially for a specific segment of SME customers.

“When I came to Spain,” said Grisi, a Mexican, “I was amazed at how closed spreading and how brutal the market is.” The country is “one of the few where mortgages are priced below 10-year bonds.”

Santander drops to third place

A possible merger between BBVA and Sabadell would push Santander to third place in the Spanish market. “We have always been very competitive and love to win,” but the goal is “to become the best bank, not the biggest.”

“It’s about having enough critical mass, and the current scale in Spain is right and allows us to compete with anyone,” the manager said.

Commerzbank acquisition ‘is not a cross-border transaction’

Regarding consolidation processes in Europe, he advocates greater regulatory integration and believes that, from a practical point of view, the possible purchase of Commerzbank by Unicredit “is not a cross-border transaction” but rather a move more similar to what BBVA and Sabadell have done since the Italian bank is already present in Germany.

Santander expects to make a profit of more than 12 billion euros this year, despite lower interest rates. Looking ahead, “continued strong growth” is forecast, Grisi added.