The Spanish government will open a public consultation over the proposed acquisition of Banco Sabadell by its larger rival BBVA, Prime Minister Pedro Sanchez said on Monday.
“The Spanish government will open tomorrow a consultation … in order to gather the opinion of citizens’ organisations and associations,” Sanchez said, adding that Madrid’s aim was to help companies become more competitive to benefit the “common interest of the country and its citizens”.
Sanchez’ comments come after Spain’s competition watchdog CNMC on Wednesday approved the deal subject to several remedies.
Sabadell, which does much of its business in the wealthy northeastern region of Catalonia, has rejected the all-share offer, currently worth over 13 billion euros ($14.7 billion).
The government also opposes the deal on concerns it could reduce competition and lead to job losses, among other things.
Under Spanish law, the government cannot stop a bid from being made, but it has the final word on whether a merger goes ahead.
The economy ministry has 15 business days to take the deal to a cabinet meeting after the CNMC’s authorisation. The government then has a month to oppose it, known unofficially as a ‘phase 3 review’.
On Monday, BBVA Chairman Carlos Torres said the CNMC’s in-depth analysis resulted in “important commitments that not only preserve competition but also promote social inclusion, territorial cohesion, and credit for SMEs (small and medium-sized enterprises), especially here in Catalonia.”
Among the commitments, BBVA vowed to maintain working capital lines for three years, extendable by two more years, for all SMEs working with Sabadell.
Meanwhile, Sabadell Chairman Josep Oliu said the government’s public consultation was a “positive” step as it allowed other associations to have a say.
Source: Reuters.com