BBVA once again defends the terms of its purchase offer (OPA) for Banco Sabadell and believes that the National Markets and Competition Commission (CNMC) has no reason to carry out an exhaustive examination of the operation.
“There is no competition problem,” said the CEO of BBVA, Onur Genç, during the results press conference between January and September. A period in which the bank has earned 7,622 million euros, 27.9% more than a year ago.
“Spain is a very competitive market,” Genç justified. “We are not going to be the largest bank in Spain. There is a competitor that will continue to be bigger,” referring to Caixabank. He considers that the CNMC should approve the operation “in Phase 1”, that is, in its first analysis, “because there are no competition problems.” “Three years ago there was an operation that created a much larger bank and it was approved in Phase 1.” Again, pointing out the integration of Bankia and Caixabank.
However, Genç has stressed that the bank “respects the criteria of the CNMC and we will submit to what the CNMC decides.” But he has repeated the argument that there is no reason for additional scrutiny. If there is integration, “we do not reach a 25% market share” which justifies “additional scrutiny.” He has pointed out that they would represent 17% of all branches and 22% in credit.
He has also acknowledged that they have presented to the CNMC “a letter with measures”, the so-called ‘remedies’ or assignments, so that Competition approves the operation, but has not given any clues because “it is confidential.”
“Why are you afraid to ask shareholders?”
The CEO has avoided answering whether both he and the president of BBVA will resign if the takeover bid does not go ahead. “We believe that we have done the right thing because this operation creates value for all parties, we are not just saying it. Our business is evolving, banking is changing. Before, the business grew by opening new branches, now technology is needed,” he justified.
Now the scenario may arise that Competition expands the analysis and the National Securities Market Commission opens the period in which Sabadell shareholders can accept the takeover bid. “If it moves to Phase 2, the CNMV does not have to wait, but we do not know of any case in which before the acceptance period there has been no decision from the CNMC,” Genç assured. “Uncertainty does no one any favors. We hope it does not continue. “Our offer is conditional on the approval of the CNMC and if it sets conditions, we have the option of giving up the operation.”
Also that it is not a hostile takeover, although it is “unsolicited”, because BBVA and Sabadell already spoke five years ago and part of the conditions that were discussed then have been maintained. “Why are you so afraid to ask shareholders? “They are the legitimate owners” of Sabadell. “If they say no, then nothing.”
Discriminated against energy companies
And like other banks, it has charged against the special tax. “It is bad for Spain and it saddens me, it is harmful for Spain,” he repeated. “The banking sector is a fundamental economic agent, even if it does not have working chimneys,” in reference to energy companies and the withdrawal of their temporary tax. “It has an anti-competitive and discriminatory design.” He also trusts that they can have some debate or influence “on the final design of the tax.
It must be remembered that the bank has once again obtained record results between January and September, in which it has earned more than 23,650 million euros.
“It is a fact that we are discriminated against with respect to the energy sector and other sectors.” The ROE of banks in Spain is 13% and that of IBEX is 17%. The rest of the sectors are more profitable and we are penalized.” ”It saddens me to see that there are going to be taxes on banks, tobacco and diesel.” ”The banks have failed by not knowing how to convey that it is an anti-competitive and discriminatory tax,” he concluded.
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