MADRID – The review of BBVA’s (NYSE: BBVA) hostile takeover bid for smaller lender Sabadell could last well into the first quarter of 2025 if the competition authorities require a more in-depth analysis, Spanish economy minister Carlos Cuerpo said on Friday.
In April, BBVA launched a 12 billion euro ($13.4 billion) bid for all of Sabadell’s shares, which turned hostile in May. It was met with opposition from the Spanish government but was given the green light by the European Central Bank on September 5.
“The CNMC itself has to decide; if it goes to phase 2, we are talking about a scenario that may last several more months, until well into the first quarter of 2025,” Cuerpo told Spanish Catalan regional TV station TV3, referring to Spain’s antitrust watchdog.
Spain’s stock market supervisor CNMV must also authorise the acquisition.
Under Spanish law, the government cannot stop the takeover bid but has the final word on allowing a merger between the two entities.
Moving the competition review from phase 1, which usually takes a month, to phase 2, which usually takes three months, could be a blow for BBVA because then the government can automatically step in. Timelines in any phase can be extended every time additional information is required.
“In case this goes to phase 2, the CNMC sets a series of conditions to ensure there is sufficient competition so as not to harm consumers,” Cuerpo said.
This week BBVA’s Chief Executive Officer Onur Genç said he expected the bid to be reviewed with minimal remedies in phase 1 in what he called a “textbook” or “ideal transaction” as he did not foresee any competition issues.
On Friday, Cuerpo reiterated the Spanish government’s opposition to the deal citing “concern about the impact on competition” for consumers.
In May, BBVA (NYSE: BBVA) said it expected the approval process to take around 6 months before taking it to Sabadell shareholders, expecting the take-up period to take a maximum of 70 days.
Earlier this month, the chairman of Sabadell, Josep Oliu, said that the takeover bid process could take well into mid-2025.
(Source: ReutersReuters)
