BBVA completes the list of international authorizations for the takeover bid for Sabadell. The bank has received the green light from the Mexican Competition Commission (Cofece) after considering that the transaction does not generate risks for competition in the banking sector of the country where Sabadell also operates.
It was not expected to raise objections given the small size of the Catalan bank’s business in the market, although the process has taken longer than in other jurisdictions. BBVA obtained permission from the Prudential Regulation Authority (PRA) of the United Kingdom and non-opposition from the European Central Bank (ECB) on September 3 and 5, and on November 26 from the Directorate General for Competition of the European Commission.
The takeover bid also received massive support from its shareholders, who authorized the capital increase necessary to attend to the share exchange in Sabadell. But key authorizations are still pending. The main one corresponds to the National Securities Market Commission (CNMV), which in November decided to take its analysis to a detailed study (Phase II) after perceiving credit risks if it absorbs Sabadell.
The competition authority has just rejected the request to appear from all the associations, chambers of commerce and employers’ associations that wanted to participate in the process, with the sole exception of that made by Banco Sabadell. A decision that some organizations have already decided to challenge, which could lengthen the process.
BBVA also has to obtain approval of the takeover prospectus from the National Securities Market Commission (CNMV), an organization that will wait to hear the CNMC’s resolution before issuing its own. The last procedure for the takeover bid is the decision of the owners of Sabadell and whether or not they manage to get enough shareholders to attend to carry out the purchase.
The Government has anticipated that it will veto the merger, something it cannot do regarding the takeover bid, although it could try to influence the conditions or commitments that may be set when the CNMC informs it of its decision.
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