The CEO of BBVA, Onur Genç, trusted this Wednesday that the National Markets and Competition Commission (CNMC) will give its approval to a possible merger with Sabadell and maintain the potential for value creation, well, if Not so, the bank would withdraw its takeover bid.
The CNMC had announced the day before that the operation must undergo a longer antitrust review to carry out a more in-depth analysis and allow other interested parties, such as Sabadell himself, to present their allegations, which could extend the process until 2025.
“Our conviction is that we expect the operation to be approved in a few months, maintaining the potential value creation of the transaction,” said Genç. “(But) if the potential is compromised, we have the option to leave. We will not hesitate for a second to withdraw if that were the case,” he added.
During his participation in a financial meeting organized by ABC and the consulting firm Deloitte, the banker has assured that he is working on compensatory measures aimed at guaranteeing regulatory approval. BBVA’s number two assures that the bank is collaborating “constructively” with Competition to close the list of remedies to the operation and clarify any concerns about the concentration that the offer could entail.
The in-depth review could force BBVA to make greater concessions and allow the Government, which has opposed the operation, to intervene, which would imply stricter measures.
In his speech, Onur Genç conveyed that the entity maintains its vision that the proposed operation “creates value” both for clients of both entities, as well as for workers and society as a whole. Specifically, he has defended that this operation represents greater scalability and efficiency, which will result in greater profitability and investment.
He has also stressed that the economic rationale for the takeover bid and subsequent merger “is undoubted” due to the potential creation of value. “Anyone who knows basic numbers would say this makes sense,” he said.
For his part, the CEO of Banco Sabadell, César González-Bueno, has announced that the entity has already informed the CNMC that it wants to be part of the in-depth analysis of the possible merger with BBVA if its takeover bid is successful.
From the beginning, Banco Sabadell claimed that the operation be studied in depth, so this Wednesday González-Bueno expressed his satisfaction with it, while asking for “light and stenographers” so that the shareholders have all the information and can decide if the takeover goes ahead.
In González-Bueno’s opinion, it is “very clear” that Sabadell’s clients prefer that the bank continue to exist, especially in the case of SMEs, because one in two works with the entity and if it were integrated into BBVA it would no longer They would have that right to decide. For this reason, he argued, different business associations and the most affected autonomous communities have expressed themselves “so clearly” against the operation.
The Government will wait for the final Competition evaluation
On the other hand, the Minister of Economy, Carlos Body, stated this Wednesday that the Government will wait to know the final evaluation of Competition on the takeover bid after the organization has decided to move it to a second phase of analysis.
Body has stressed that, in this second phase, the CNMC wants to carry out a “more detailed analysis of precisely one of the issues that most concerns” the Government: the impact on competition that the operation would have.
“Let’s wait to see what the final result of the assessment by the CNMC is. It is true that what this does is delay the process a little,” the minister admitted when asked if the Executive will intervene in the operation now that Competition has led it to a second phase of study.
Body has reiterated that the Government has a vision of the OPA “of general interest” and that it appreciates worrying elements “from the beginning”, among them the impact of excess concentration, both for the financial clients themselves, and in terms of financial inclusion ; the impact on employment and territorial cohesion; and the impact on the credit or financing of SMEs.
“And this joint assessment or evaluation of all these effects is unique on the part of the Government, because each of the institutions has to look at its powers. And this is the area in which we look at this operation and we will do so until the end,” the minister concluded.
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