BBVA defends that the takeover bid for Sabadell does not involve competition problems, but remembers that if the National Markets and Competition Commission (CNMC) sets burdensome conditions it could renounce the transaction. “If the CNMC imposes conditions that affect the creation of value, we can turn back,” recalled the group’s CEO, Onur Genç, during the presentation of results.
Its assessment takes place when the CNMC must decide whether to conclude its opinion in the so-called Phase I, without special objections to the operation, or take the analysis to Phase II, with a requirement for a longer period. “We deeply respect the criteria of the CNMC and we will submit to what it decides. And, if in the end it turns out to be Phase II, we would not agree that it is necessary, but we will continue working with them,” he explained, ruling out that it will entail serious conditions. to the combined group.
“In any case, whether Phase I or Phase II, this operation should be authorized without ‘structural remedies’ as happened a few years ago with the operation of CaixaBank and Bankia,” he added during the presentation of the group’s results for the first nine months. of the year.
The CaixaBank precedent is one of the arguments put forward by the Basque group, which ensures that the annexation of Sabadell would still give a bank with lower market shares in Spain. “We are not even going to be the largest bank in Spain with this transaction, there is already a much bigger competitor than us,” said Genç.
Sabadell appeals to the complexity of the transaction and the potential damage to SMEs and their credit of eliminating one of its main suppliers to argue that it will go to Phase II – the CNMC’s decision will be known in the middle of the month.
Although the banker admitted that they have sent to the organization led by Cani Fernández a series of commitments that BBVA would assume without wanting to go into detail, appealing to the “confidentiality” of the process, he justified that the transaction does not cause problems either “because Spain has a already very competitive”. In this regard, he encouraged us to review statistics such as those of the European Central Bank (ECB) to verify that the prices of credits in, for example, Germany, “which have many banks” are “much higher” than in Spain for mortgages, for companies or for SMEs, being the same currency.
According to Genç, the technical conditions are not met to go to Phase II either because “we are not going to be above 25% in anything – a threshold set to bring the analysis to greater scrutiny – and he alleged that the bank is experiencing the growing emergence of digital competitors “who are opening multiple new accounts, not only for individuals, by the way, also for SMEs and companies, so the barriers to entry into this sector have been reduced.”
The banker agreed that opening the detailed analysis would generate “uncertainty” that could cause discontent among BBVA shareholders, but also Sabadell. “We understand them perfectly because uncertainty is never good for anyone (…) If I were a Sabadell shareholder, which I am not, but if I were, I would like this to be clear and for a yes or no to be said as soon as possible “he added.
In the event that the CNMC did not approve it or set conditions, it recognized that the bank would have to study them and reserves the possibility of withdrawing the takeover bid, depending on its depth. The National Securities Market Commission (CNMV) could open the accession phase, prior approval of the prospectus, without yet having the Competition opinion, but it estimated that the situation will not arise since said resolution is always usually available before the closing of the application. opa
These days it was learned that the GQG Partners fund left BBVA after informing the management team of its rejection of the takeover bid. In 2021, it controlled 3.09% of the bank, although it later disappeared from the CNMV records, falling below the 3% required to make the investment transparent. “At the meeting we called in July, 96% voted in favor of this operation and only 4% against. And in the press we see that that 4% may have sold, but that 96% remains,” Genç said. , downplaying that decision.
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