BBVA's Bold Bid: Navigating Political Hurdles for Sabadell Merger

Spanish bank BBVA's acquisition of Sabadell faces political resistance despite approval from the competition watchdog. BBVA's chairman, Carlos Torres, asserts that the merger benefits shareholders, clients, and businesses. The Economy Minister must decide whether to further review the deal, which values Sabadell at approximately 15 billion euros.

BBVA, the Spanish banking giant, is pushing forward with its ambitious acquisition of smaller rival Sabadell, despite encountering political resistance. BBVA's chairman, Carlos Torres, emphasized the benefits of the move for shareholders, clients, and businesses, stating that further government scrutiny is unnecessary.

The government recently launched a non-binding public consultation following the competition watchdog's approval of the deal, subject to several conditions. The acquisition, valuing Sabadell at around 15 billion euros, awaits potential cabinet review by Economy Minister Carlos Cuerpo, who has until May 27 to decide.

Should the minister opt against cabinet referral, the merger could proceed swiftly, pending authorization from the markets supervisor. Under Spanish law, final approval rests with the government, although it cannot stop the initial bidding process.

(With inputs from agencies.)