Brussels approves BBVA’s takeover bid for Sabadell without objections

The European Commission has decided to give the ‘green light’ to BBVA’s takeover bid (OPA) for Banco Sabadell, and its eventual merger, in the context of the new foreign investment framework created by the European Union against the risk that investments from third countries could create distortions in the internal market and undermine fair competition within the European economic space, according to Europa Press.

The operation was notified to Brussels on October 21 and the deadline was extended until November 26. Community services had to determine whether it was necessary to initiate an “in-depth investigation” or the merger could go ahead without further examination by the Community Executive. Finally, Brussels has opted for the second option.

That is to say, the Brussels Competition services have decided not to investigate the operation under this new foreign investment framework. This was not a usual concentration authorization, since it is being studied at the national level from that perspective.

In Spain, the National Markets and Competition Commission (CNMC) has decided to reach a second phase of the analysis of the operation, due to its effect on consumers, which will take the purchase offer, predictably, until mid-2025. .

Since 2023, the European Union has had this regulation on foreign subsidies (FSR) by which companies must submit detailed information to the European Commission on foreign subsidies received in the three years prior to the entry into force of the new common framework.

Specifically, the regulation establishes that Brussels must be notified of those operations in which any of the companies is established in the EU and generates at least 500 million euros of turnover in the community market and if the companies have obtained from third parties countries in the three previous years combined financial contributions exceeding 50 million euros.

In the announcement of the takeover bid for Sabadell sent to the National Securities Market Commission (CNMV), BBVA already indicated that it would present a notification to the European Commission to examine the risk of investments from third countries, but clarified that the effectiveness of the operation is not subject to the condition of obtaining this authorization.