MADRID – Spain’s anti-trust watchdog CNMC on Monday flagged it may need to launch an extended review of BBVA’s (NYSE: BBVA) hostile bid for smaller banking rival Sabadell, a deal that the government has opposed.
BBVA launched a 12 billion euros ($13.4 billion) bid for all of Sabadell’s shares in April and went hostile in May. The takeover has to be authorized by the competition authority and also by Spain’s stock market supervisor CNMV.
“As soon as a decision is adopted, including the possible opening of a second phase of analysis, the decision will be published,” the anti-trust regulator said.
Its review began in June. Phase 1 reviews usually take a month. Moving to phase 2, which usually takes three months, could be a blow for BBVA (NYSE: BBVA) because then the government could step in.
Opening a phase 2 review could also imply potentially stricter remedies for BBVA.
The takeover of Sabadell was met with opposition from the Spanish government but was given the green light by the European Central Bank on September 5. Under Spanish law, the government has the final word on whether a merger goes ahead.
Timelines in any phase can be extended every time additional information is required.
(Source: Reuters)
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