MADRID – The Spanish stock market regulator, the CNMV, will wait for the outcome of the competition watchdog’s review of BBVA’s (NYSE: BBVA) hostile bid for Sabadell before deciding on the potential authorization of the takeover prospectus, CNMV chief Rodrigo Buenaventura told reporters on Thursday.
In November, the antitrust watchdog said that BBVA’s all-share offer for Sabadell, valued in April at more than 12 billion euros ($12.64 billion), must undergo a longer phase 2 review that could extend the process well into 2025 in a deal opposed by the government.
“With the information we have and with the expected calendar that is being considered, we believe that the most appropriate approach is for us to approve the bid once the conditions from the anti-trust analysis are known, as it is important information for the offer’s recipients,” Buenaventura said.
Sabadell management opposed BBVA’s bid, but the European Central Bank gave it the green light on September 5.
Under Spanish law, the government cannot stop a bid from being made, but it has the final word on whether a merger goes ahead.
Legally, the CNMV can approve the takeover prospectus without having to wait for the CNMC’s decision – but in that case, Sabadell shareholders would be asked by BBVA (NYSE: BBVA) to decide whether to accept the offer without knowing all the conditions.
The in-depth review could require BBVA to make greater concessions and allow the government to step in, meaning stricter remedies could ensue.
