The National Markets and Competition Commission (CNMC) will continue analyzing BBVA’s purchase offer (OPA) for Banco Sabadell, which it classifies as “hostile”, as there is no agreement between the entities, because it considers that “it requires a more in-depth analysis.”
Competition breaks down that “the economic sector affected by the operation is the financial sector, especially banking services and payment services” and that “additionally, the parties are simultaneously present in the insurance production and distribution market, in the pension funds and plans and in the asset management market,” he lists.
For this reason, “in view of the circumstances of the operation and its potential impact on the maintenance of effective competition,” its Competition Chamber has resolved this Tuesday that it will “deepen the analysis of the file in the second phase of the procedure.”
This will delay the resolution of the Competition on the operation for several months and does not mean that it will rule in one direction or another. “It does not prejudge the definitive conclusions,” emphasizes the CNMC.
Will request information from the autonomous communities
The supervisor headed by Cani Fernández details that, “in the first phase of the procedure”, he has “carried out a detailed investigation into the competition situation in the affected markets”, which has entailed, for example, demanding information from the affected parties. “This will result in greater efficiency in the analysis during the second phase, whose objective is to deepen the study of the operation,” he indicates.
“Banco de Sabadell and other third parties with legitimate interest may present allegations” and “the notifying party”, in reference to BBVA, “may also make allegations and provide more information. Likewise, a mandatory report will be requested from the autonomous communities in which the concentration has a significant impact,” he adds, which indicates that the process will be long. “The final resolution approved by the CNMC may authorize, accept commitments, impose conditions or prohibit the concentration operation,” of BBVA and Sabadell.
From now on, Competition has months ahead to decide and leaves the next decision in the hands of the National Securities Market Commission (CNMV), which has to approve the proposal itself, that is, open the period for shareholders to of Sabadell can sell their shares to BBVA. Only once this sale of securities is concluded will it be known whether or not there is a merger between the two entities, something that does not have the support of the Government, which has been very critical of the operation.
For weeks now, the CNMC’s decision has been in the focus of both BBVA and Sabadell, to see whether or not an exhaustive analysis of the impact of a future merger between both banks was necessary. And there each entity has defended its interests. The CEO of BBVA, Onur Genç, assured a few days ago that “there are no competition problems” because “Spain is a very competitive market” and because the CNMC did not put obstacles to the integration of Bankia and Caixabank.
On the other hand, the CEO of Sabadell, César González Bueno, was pulling in the opposite direction, because, in his opinion, “there is a clamor, in Spain, from the autonomous communities, from the political arc, that it is [una operación] bad”.
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