He BBVA proposed a series of conditions to National Markets and Competition Commission (CNMC) to have the public purchase offer approved Bank Sabadell. But his attempt failed since the operation will be studied in depth in phase 2 because the Competition Authority notes a risk of concentration of credit to SMEs, which is why it will probably require more severe measures.
With these measures, similar to those proposed CaixaBank for the purchase of BankiaTHE synergies (cost savings) sought by BBVA, which set them at 850 million gross. Which has already lowered the value of Sabadell for BBVA shareholders. Today, the rejection of the CNMC and the move to phase 2 portend even harsher conditions.
BBVA made the proposed measures public in a press release in response to a communication from the CNMC itself in which it justified the move to phase 2 due to the detection of a risk for credit to SMEs in the event of completion of the takeover bid for Sabadell.
Among the measures proposed and deemed insufficient, there is the non-closure offices where there is no other fence, maintain commercial conditions for customers individuals And SMEs in zip codes in which there are fewer than four entities or no dropouts municipalities where there are fewer than three competitors.
To guarantee the financial inclusionBBVA undertakes not to close offices when there are no other offices (BBVA or Sabadell) within 300 meters and not to close offices in postal codes with lower per capita income levels is less than 10,000 euros.
In addition, it undertakes to maintain traffic lines to all businesses for 18 months. SMEs (until now it had only announced that it would do so for 12 months) and the current volume of credit total to SMEs that work only with the two entities
Nor will it abandon municipalities (or replace the office with an agent, bank bus or other means) in which there are fewer than three competitors. Customers in these municipalities will be offered the service Post office cash free twice a month. In addition, it undertakes to maintain the service of box with the same opening hours as the Sabadell offices of these municipalities.
You will also create an account for vulnerable clientelewith no set-up or administration and maintenance fees, a free debit card and free and unlimited digital channel transfers, among other conditions.
On the business side, it will maintain business conditions in zip codes where there are fewer than four financial institutions.
In addition, for SMEs in these postal codes, the prices of the new credit will not exceed the average prices applied nationally. None of Sabadell’s corporate offices throughout Spain will close either.
