BBVA once again defends the terms of its purchase offer (OPA) for Banco Sabadell and considers that the National Markets and Competition Commission (CNMC) has no reason to carry out an exhaustive examination of the operation.
“There is no competition problem,” said BBVA CEO Onur Genç during the results press conference between January and September. A period during which the bank earned 7,622 million euros, or 27.9% more than a year ago.
“Spain is a very competitive market,” explains Genç. “We are not going to be the biggest bank in Spain. There is a competitor that will continue to be bigger,” referring to Caixabank. He believes that the CNMC should approve the operation “in phase 1”, that is to say, in first analysis, “because there are no competition problems”. “Three years ago, an operation gave birth to a much larger bank and it was approved in phase 1.” Again, highlighting the integration of Bankia and Caixabank.
However, Genç stressed that the bank “respects the criteria of the CNMC and we will submit to what the CNMC decides.” He reiterated the argument that there is no reason to broaden the analysis. If there is integration, “we do not achieve a 25% market share”, which justifies “further examination”. He stressed that they would represent 17% of all agencies and 22% of credit.
He also admitted having presented to the CNMC “a letter with measures”, the so-called “remedies” or missions, for Competition to approve the operation, but gave no indication because “it is confidential”.
“Why are you afraid to ask shareholders?
The CEO avoided saying whether he and BBVA’s chairman would resign if the takeover bid did not take place. “We believe we made the right choice because this transaction creates value for all parties, we are not just saying it. Our business is evolving, the bank is evolving. Before, the company grew by opening new branches, now it needs technology,” he explained.
It may now be that competition broadens the analysis and that the National Securities Market Commission (CNMV) opens the period during which Sabadell shareholders can accept the public purchase offer. “If it moves to phase 2, the CNMV will not have to wait, but we do not know of any case in which there would not have been a decision from the CNMC before the end of the acceptance period,” he said. assured Genç. “Uncertainty doesn’t do anyone any favors. We hope this will not continue. “Our offer is conditional on the approval of the CNMC and, if it imposes conditions, we have the possibility of abandoning the operation.”
It is also not a hostile takeover bid, although it is “unsolicited”, because BBVA and Sabadell already spoke five years ago and part of the conditions discussed at the time were maintained . “Why are you so afraid to ask shareholders?” “They are the legitimate owners” of Sabadell. “If they say no, then nothing.”
Discrimination against energy companies
And like other banks, it was charged against the special tax. “It’s bad for Spain and it saddens me, it’s harmful for Spain,” he repeated.
“The banking sector is a fundamental economic agent, even if it does not have working chimneys”, in reference to energy companies and the removal of their temporary tax. “It has an anti-competitive and discriminatory design.” He also hopes they can debate or influence the final design of the tax.
It should be remembered that the bank once again achieved record results between January and September, during which it earned more than 23.650 million euros.
“It is a fact that we are discriminated against in the energy sector and in other sectors.” The ROE of banks in Spain is 13% and that of IBEX is 17%. The rest of the sectors are more profitable and we are penalized.” “It saddens me to see that there are going to be taxes on banks, tobacco and diesel.” “The banks have failed by not knowing how to do it understand that this is an anti-competitive and discriminatory tax,” he concluded.
