BBVA Gets the Green Light to Acquire Sabadell in Mexico

The National Banking and Securities Commission (CNBV) has approved BBVA's indirect control of Sabadell in Mexico. BBVA announced that this authorization adds to the permission it received last December from the Federal Economic Competition Commission (Cofece), the body responsible for regulating competition-related matters.

Cofece determined that this transaction did not pose any risks to competition within the country’s banking system. BBVA Mexico positions itself as the largest bank in the country in terms of assets and loan portfolio. By the end of 2024, the bank's assets reached 3.38 trillion pesos, while its total loans amounted to 1.9 trillion pesos. In contrast, Sabadell Mexico ranks as the nineteenth largest bank, with assets of 143.715 billion pesos and a loan portfolio of 94.498 billion pesos. "Additionally, BBVA received three of the most important approvals in Europe: authorization from the Prudential Regulation Authority (PRA) in the UK and a lack of objection from the European Central Bank," the bank stated in a press release.

The approval from both the CNBV and Cofece for BBVA to acquire Sabadell in Mexico highlights an interesting trend in the consolidation of the banking sector. Such moves can further strengthen BBVA's leadership in the country, but they also raise questions about competition and the variety of options available to consumers. It is crucial that regulatory bodies continue to monitor these changes to ensure a robust and competitive financial system.