The National Markets and Competition Commission (CNMC) will decide in mid-November on the purchase of Sabadell by BBVA, an operation processed through a public acquisition offer. As confirmed by elEconomista, the regulatory body has not made any formal decision this Wednesday on the consolidation process of the financial sector, although it recognizes that the maximum period of the first phase is about to end.
As this newspaper has learned, the organization chaired by Cani Fernández has perceived risks in the operation, so it will presumably consider take the study of the transaction to the so-called ‘Phase 2’, in order to analyze in more detail possible risks to competition in the different businesses of both entities.
In cases of operations analyzed in Second Phase, the CNMC has three months to decide on the matter, in accordance with the Competition Defense Law. From now on, the regulator must prepare a brief statement to inform the natural or legal persons involved, as well as the Council of Consumers and Users, so that they can present allegations that they consider appropriate within a maximum period of ten days. In this document, the CNMC must compile the possible obstacles to competition.
Since the operation has a significant impact on several autonomous communities (Catalonia, the Valencian Community and Galicia), the CNMC Investigation Directorate will request a non-binding report from the aforementioned regional governments within 20 days.
Finally, in the case of the aforementioned Phase II, The CNMC has three months to decide on the issue with four possible actions: Authorize the concentration; condition the approval to compliance with certain commitments proposed by the notifiers or conditions (remedies); prohibit the concentration or agree to archive the proceedings if applicable. The resolution adopted by the Council of the National Competition Commission will be communicated to the Minister of Economy, Commerce and Tourism, Carlos Body, at the same time as its notification to the interested parties.
However, in the event that the CNMC decides to prohibit the concentration, the interested parties may appeal through administrative channels before the aforementioned minister has not submitted said operation to the Council of Ministers or, instead, in the event that the Council of Ministers has not adopted an agreement on the concentration.
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