BBVA-Sabadell Deal: Spain Cabinet Review
- The Spanish government will fully review BBVA's €11 billion hostile takeover bid for Sabadell, a move that could further complicate the year-long effort to consolidate two of Spain's...
- The cabinet has 30 days to assess the merger and determine if additional conditions or restrictions are warranted beyond competition concerns.
- Sabadell's board rejected BBVA's initial friendly approach, and business leaders in Catalonia, where Sabadell is based, also oppose the deal.
Spain’s cabinet is actively reviewing the BBVA-Sabadell merger, a move that could substantially impact the Spanish financial landscape. The government is intensely scrutinizing BBVA’s €11 billion bid for Sabadell, driven by concerns over competition adn potential impacts on jobs, financial inclusion, and regional economic stability, notably in Catalonia and Valencia. Economy Minister Carlos Cuerpo has emphasized careful consideration about the merger’s wide-ranging effects. News Directory 3 reports this cabinet’s vital role in assessing the proposed deal, with a 30-day window to determine if further restrictions beyond competition are needed. Sabadell’s board opposes the hostile takeover,favoring a standalone strategy. Discover what’s next for the future of banking in Spain.
Spain to Scrutinize BBVA’s sabadell Takeover Bid
Updated May 27, 2025
The Spanish government will fully review BBVA’s €11 billion hostile takeover bid for Sabadell, a move that could further complicate the year-long effort to consolidate two of Spain’s major banks. Economy Minister Carlos Cuerpo announced Tuesday that the proposed deal has been sent to the cabinet for review.
The cabinet has 30 days to assess the merger and determine if additional conditions or restrictions are warranted beyond competition concerns. The Socialist-led government has previously expressed reservations about the tie-up, which would create Spain’s second-largest lender, surpassing Santander but remaining smaller than CaixaBank. this proposed BBVA Sabadell merger has faced unprecedented opposition.
Sabadell’s board rejected BBVA’s initial friendly approach, and business leaders in Catalonia, where Sabadell is based, also oppose the deal. The competition regulator, CNMC, had earlier approved the takeover, contingent on maintaining existing BBVA branches.
Cuerpo stated that the ministry’s analysis necessitates a closer examination of the potential impact on job security, financial accessibility, and regional economic stability, notably in Catalonia and Valencia, where Sabadell has a important presence. The government also highlighted potential effects on research,technological advancement,and social policies.
According to Cuerpo, five other ministries involved in economic policy support the cabinet review. He previously voiced concerns about potential financial stability risks arising from reducing the number of major banks in Spain to three. However, the competition regulator’s ruling addressed many of these concerns.
Banco Sabadell remains focused on maximizing value creation. We have a solid and credible long-term plan… and we are fully confident that our standalone strategy will deliver greater and more enduring shareholder returns.
BBVA, chaired by Carlos Torres, aimed to launch its tender offer to Sabadell shareholders before year-end. Shareholders will ultimately decide on the acquisition. The bank stated the referral “reaffirms that the transaction serves the general interest of Catalonia, Spain and Europe,” adding that BBVA has proposed ”unprecedented remedies” benefiting households, the self-employed, SMEs, and corporations.
What’s next
BBVA must now await the completion of the cabinet review and subsequent approval from the market regulator before proceeding with the tender offer.Even if Sabadell shareholders accept the bid, the government retains the power to veto a legal merger, perhaps leaving BBVA as the owner of Sabadell without the ability to fully integrate it.