Spanish Government Scrutinizes BBVA-Sabadell Acquisition

The Spanish government is reviewing BBVA's proposed acquisition of Sabadell, valued at over 14 billion euros. Despite antitrust approval, there are concerns about job losses. The Economy Ministry has launched a public consultation and referred the decision to the cabinet, which will decide within a month.

The Spanish government is taking a closer look at BBVA's plan to acquire Sabadell as concerns about potential job losses loom. The Economy Ministry announced Tuesday that it will thoroughly examine the 14 billion euro deal, which has been on the table for 12 months.

Despite receiving a green light from Spain's antitrust agency, the deal faces opposition from Madrid. Economy Minister Carlos Cuerpo has now escalated the matter to the cabinet, which has a month to assess the acquisition, potentially attaching conditions or even denying approval based on common interest considerations.

In an unprecedented move, a non-binding public consultation has been initiated to solicit feedback from citizens and businesses. While Spanish law does not allow halting a bid in progress, the government holds the authority to grant or deny final merger authorisation.

(With inputs from agencies.)