The European Commission has decided to give the “green light” to BBVA’s takeover bid (OPA) for Banco Sabadell, and its possible merger, in the context of the new framework for foreign investments created by the Union European Union against the risk that investments from third countries could create distortions in the internal market and harm fair competition within the European Economic Area, according to Europa Press.
The operation was notified to Brussels on October 21 and the deadline was extended until November 26. Community Services had to determine whether there was a need for a “full investigation” or whether the merger could proceed without further review by the Community Executive. Ultimately, Brussels opted for the second option.
That is to say that the Brussels Competition services decided not to investigate the operation within the framework of this new framework for foreign investments. This is not a usual concentration authorization, since it is studied at national level from this perspective.
In Spain, the National Commission for Markets and Competition (CNMC) has decided to move to a second phase of analysis of the operation, due to its effect on consumers, who will accept the purchase offer, as we could expect it, until mid-2025.
Since 2023, the European Union has had this Foreign Subsidies Regulation (FSR) through which companies must submit to the European Commission detailed information on foreign subsidies received during the three years preceding the entry into force of the new framework common.
Concretely, the regulation establishes that Brussels must be informed of operations in which one of the companies is established in the EU and generates at least 500 million euros in turnover on the Community market and if the companies have obtained from from third countries in the three previous years, cumulative financial contributions exceeded 50 million euros.
In the announcement of the public purchase offer for Sabadell sent to the National Securities Market Commission (CNMV), BBVA has already indicated that it will present a notification to the European Commission to examine the risk of investments from from third countries, but clarified that the effectiveness of the public purchase offer on Sabadell was sent to the National Securities Market Commission (CNMV). exploitation is not subject to the condition of obtaining this authorization.
