The National Markets and Competition Commission (CNMC) will rule this week on the analysis of the merger that BBVA wishes to carry out with Banco Sabadell if the offer launched to the shareholders of the Catalan entity is successful.
The first phase of analysis of the operation is about to end, the CNMC must therefore decide these days and specify if you have already completed your study or if you consider that it requires a more detailed analysiswhich results in a second phase.
Most of the operations studied by the CNMC are approved in the first phase, as happened with the merger of CaixaBank and Bankia, which gave birth to the largest financial group in Spain, although this involves fulfilling a series of conditions to guarantee competition.
From the beginning, the management of BBVA expressed confidence that the operation will get the green light competition in this initial phase. In the words of the bank’s CEO, Onur Genç, we hope you see “no problem.”
The CEO of BBVA believes that the merger of CaixaBank and Bankia, which gave birth to a larger group than that which BBVA and Sabadell would create, It is a clear precedent for the CNMC to approve the operation in the first phase, Besides the fact that they have studied a possible merger and do not see any competition problems.
Sabadell, however, has always insisted on the usefulness of the analysis of the CNMC goes further and includes a second phase.
The entity’s CEO, César González-Bueno, recalled in an interview with EFE that there was “an unprecedented level of agreement” in which unions, businessmen, autonomous communities and “the entire political arc” They considered that this operation posed competition problems.
The path chosen by the CNMC
This week, we will finally know which path the CNMC chooses and some sources even mention a third possibility in which Competition has decided to extend the initial phase before resolving.
In parallel, BBVA’s offer to Sabadell shareholders is still awaiting approval from the National Commission stock markets, which is essential for approving the buyout prospectus and for the bank to move forward with its purchase plans.
In this case, the question is whether the stock market regulator decides to wait for the opinion of Competition on the merger, which could be delayed beyond the first half of November if the CNMC extends the analysis period.
Once all these obstacles have been overcome, BBVA’s idea is to offer Sabadell shareholders a payment of 0.29 euros in cash and deliver one new share for each 5,019 of Sabadell, taking into account the dividends paid by both entities in October.
And in the event that the public purchase offer is successful, because more than 50% of the shareholders of the Sabadell has decided to sell its securities to BBVAwhich would allow it to take control of the Catalan entity, the merger with the BBVA group would be underway, which the government categorically rejects from the first minute.
Regarding the possibility that the Executive ultimately prevents BBVA from merging with Sabadell, CEO Genç downplayed the issue during a meeting with investors, because, if the takeover bid succeeds, the group would also have control of the Catalan entity .
