CNMV to Assess Competition Before Deciding on BBVA's Takeover Bid

The National Securities Market Commission (CNMV) of Spain is in the process of reviewing the competition analysis related to the takeover bid (OPA) that BBVA has made for Sabadell, before making a decision on when to approve the bid prospectus and start the period for shareholders to accept. This was mentioned by the CNMV chairman, Rodrigo Buenaventura, in response to questions from lawmakers during a Congressional session regarding the progress of BBVA's offer, which is estimated at approximately 12 billion euros (13.18 billion dollars).

Despite the Spanish Government showing its discontent with the bank's offer, the European Central Bank gave its approval on September 5. According to regulations in Spain, the Government cannot block the OPA, but it does have the final say on the authorization of a merger between the two entities. Additionally, the CNMV and the National Commission on Markets and Competition (CNMC) must also approve the acquisition. In recent months, Sabadell has rejected BBVA's offer, arguing that it does not reflect the true value of the bank and that they have better expectations for 2024 and 2025. César González-Bueno, president and CEO of Sabadell, mentioned that the bank plans to disburse 2.9 billion euros between 2024 and 2025 and has updated its profitability forecasts.

It's important to mention that these types of movements in the banking sector can significantly influence the market and investor perceptions. A well-founded takeover bid can be a catalyst for better financial performance, but resistance from the target entity may generate uncertainty. The way these negotiations unfold and the regulatory response will be key to the future of both institutions and the financial system as a whole.