The National Markets and Competition Commission (CNMV) has excluded the Valencian Business Confederation (CEV) from being part of the takeover process presented by BBVA for Sabadell. The CNMV has also not allowed several dozen applicants to participate as interested parties and has only allowed Banco Sabadell for all phases of the operation. Those who have been able to report on the takeover bid have been the Catalan Competition Authority (ACCO) and the Competition Commission of the Valencian Community (CDCCV), which has reported negatively on the merger as elDiario reported exclusively yesterday. .is. The ACCO also opposes BBVA’s takeover bid for Sabadell.
On December 11, 2024, the CEV announced that it was going to appear in the procedure to contribute to “a rigorous and transparent analysis of the operation, ensuring that the decisions made consider the short-term impact on the available credit and its long-term effect on the economy.” In this sense, the Valencian employers’ association expressed its “concern” about the possible repercussions that this operation may have on the business community, especially small and medium-sized companies, and on competition in the Spanish banking sector.
Despite these arguments, the CNMV has denied the appearance of the Valencian employers’ association, as it has done with the other organizations and associations that have wanted to participate in the process. Regarding the veto, the competition commission has explained that “it must be taken into account that it is not enough to have a general interest in the operation, but rather a legitimate interest linked to the analysis of the concentration from a point of view of defense of the competence”. “Given how sensitive the merger control procedures are for the companies involved, the CNMC is always very strict when granting interested party status,” they add. Regarding the appearances, it is not made public during the processing, although it can be made public (although it would not necessarily be obligatory) in the final Proposal Report.
The Valencian employers against the takeover bid
The Business Confederation of the Valencian Community (CEV) has been against the forced merger between BBVA and Sabadell from the beginning. “Based on absolute respect for business freedom, it is considered that the hostile takeover launched by BBVA to Banco Sabadell, despite possibly complying with all legal and procedural requirements, if successful, would further restrict the range of financing possibilities for the companies of the Valencian Community”, they assure.
For Valencian employers, the concentration of the banking sector in Spain “is already very high.” “The first four banks already monopolize 70% of certain financial segments, such as the deposit and account market, and, if this operation becomes effective, they would be in the hands of only three banks.” “The new operation would increase the concentration in the supply of credit and the provision of financial services to companies and citizens, and would entail a severe readjustment of entities, offices and, ultimately, the supply of credit and financing at the territorial level,” they state.
Likewise, they point out, if this circumstance occurs, “it would also be detrimental to Alicante due to the loss of the entity’s headquarters, which has great roots in the territory, and, therefore, of the entity’s manifest sensitivity to the productive and social fabric.” Furthermore, the Competition Defense Commission of the Valencian Community concludes that the merger of BBVA and Sabadell would create an entity that would have more than 40% of the market share in Alicante in SMEs and consumers.
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