UGT asks to participate in BBVA takeover bid due to loss of up to 10,560 jobs
UGT has asked to appear before competitors in the takeover bid submitted by BBVA for Sabadell, as it implies Possible loss of up to 10,560 jobsaccording to a union statement released this Monday. “Our organization has almost 150 representatives, chosen by employees from among representatives of BBVA and Banco Sabadell, which means that it has a direct interest in this banking operation,” he said.
The organization headed by Kany Fernandez has submitted a study on a possible merger to Phase II, on the perception of risks for SME lending and for the card payment business. This decision, which is unusual in Spain for banking concentration transactions, involves hearing third parties before reaching a final conclusion on the transaction. After opening Phase II CNMC Sabadell appeared first. – he did it in less than 24 hours – he was followed by the employers’ association Pimec, Foment del Treball, the Galician Employers’ Association, the Pontevedra Business Confederation and the Lugo Confederation.
After Competition published a note on the risks it warned about last Wednesday, BBVA said that “the liabilities presented exceed those agreed in previous transactions in the Spanish financial sector, some by a significant amount.” Among other things, the Basque bank has committed itself to CNMC maintain current funding lines (loans of less than one year) that Sabadell has with companies for a period of 18 months, excluding financial deterioration; and the entire volume of loans to SMEs that have no other financial provider other than both banks, also for a year and a half.
The union, led by Pepe Alvarez, indicated that the merger of the two companies, if carried out, “could have significant consequences for the economy, especially in terms of access to credit and employment, affecting both the self-employed and small and medium-sized businesses.” large enterprises (SMEs) as well as families (both domestic finance and access to housing), and is a major concern among staff working in both financial institutions.”
According to an analysis carried out by UGT research services, Reduced availability of loans by 8%resulting in a decrease in loans of more than 54 billion euros. “SMEs and self-employed people who rely on credit as the oxygen for their operations will face increased business costs due to reduced funding supply,” he added.
Along with the reduction in credit, potential job losses and office closures are among the main areas of concern. According to the union, loss of 7,685 to 10,567 jobsand insists that reducing the ability of companies and the self-employed to access credit will mean destroying employment in many sectors, not just banking. UGT also brings to the table risk of closure of 589 to 883 offices nationally, with particular influence in Catalonia, the Valencian Community, Asturias and Galicia, where Banco Sabadell has a strong presence.
In addition, the merger will increase the concentration of banking activities in Spain, which will be higher than the European average, since the two main banks, CaixaBank and the newly formed entity BBVA-Banco Sabadell, They will control 73.7% of bank offices.which reduces competition in the market and negatively impacts consumers through worsening prices and financial services, the union argues.
For all these reasons, “it is very important that the UGT has the opportunity to appear in this case to participate directly in it,” the union concluded.
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