The European Commission approves without objections BBVA’s takeover bid for Banco Sabadell. One more step in obtaining authorizations for the operation, although in this case it was a procedure that was practically taken for granted that it would pass the Brussels filter.
“The Directorate General for Competition of the European Commission has completed the review of the operation of BBVA and Banco Sabadell under the European Foreign Subsidies Regulation (FSR) without raising objections,” the Basque bank reported.
On October 21, it was published in the General Directorate of Competition of the European Commission the takeover notification file; Since then there has been a period of 25 business days for the resolution. «The file originates from the FSR, a regulation from July 2023 that focuses on subsidies granted by non-EU countries to companies operating in the European single market. The rule requires prior notification to the European Commission of concentration operations with companies established in the EU and public tenders of a certain size. Furthermore, it grants the European Commission the power to initiate ex officio investigations into potentially distorting non-EU subsidies,” says BBVA.
In this way, apart from Brussels, the Basque entity has already obtained the OK from European Central Bank (ECB) and foreign competition authorities. What remains, in this case, is the thorniest: the approval of the National Markets and Competition Commission (CNMC) here in Spain, and also of the National Securities Market Commission (CNMV) to go ahead with the takeover brochure
The Competition file is what generates the most doubts at the moment, with opposing positions between the two entities. The CNMC has decided to extend its analysis to phase two, giving entry to many more entities to comment on the operation. This delays the deadline for the operation until spring.
The fate of the takeover bid largely depends on the verdict adopted by Competition, since the institution led by Cani Fernández has the possibility of imposing conditions to approve the operation and even veto it. Likewise, the fact of having extended the examination to phase two also means that the Government will now be able to intervene and, where appropriate, may expand the conditions that the CNMC ends up imposing.
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