ECB authorizes BBVA to advance its proposed acquisition of Sabadell

The European Central Bank (ECB) authorized BBVA bank on Thursday, the 5th, to move forward with its proposed acquisition of Banco Sabadell. Now, the Spanish authority, the Spanish Market and Competition Commission (CNMC), still needs to authorize the process.

In a statement, BBVA said it is awaiting a positive response from Sabadell shareholders, who have been reluctant to accept the transaction with their largest rival in Spain. According to BBVA, once its stake in Banco Sabadell is acquired to more than 50%, it plans to merge both banks. This merger is subject to the relevant regulatory approvals.

The green light from the European regulator represents “a new and very significant milestone that also demonstrates the solidity and solvency of this venture,” said BBVA CEO Carlos Torres Vila.