Sabadell's CEO expressed on Wednesday that he does not anticipate Spain's competition regulator to take a stringent stance on BBVA's hostile takeover bid when it announces the findings of its review into the proposed deal.
Cesar Gonzalez-Bueno indicated that the regulator is likely to implement behavioral remedies to approve the offer, rather than imposing structural requirements such as asset sales. BBVA's CEO, Onur Genc, expressed confidence that the competition authority would approve the bid within the next few weeks, emphasizing that the bank had submitted a comprehensive list of remedies to facilitate the process.
The CNMC, Spain's anti-trust watchdog, declined to comment on the matter.
Gonzalez-Bueno noted that the offer from BBVA was in a "very shaky" state due to political opposition and economic concerns. He described the situation as "very complex," suggesting that the deal faces a challenging future. He reiterated his belief that the merger would require more capital than BBVA initially anticipated and that the expected synergies from the merger were unrealistic.
BBVA has mentioned the possibility of pursuing a bid without fully merging with Sabadell, which would necessitate government approval and could negatively impact its capital costs.
The 12.28 billion euro surprise bid for Sabadell, announced nearly 11 months ago, would mark Spain's second-largest banking deal by assets. The government opposes the deal, citing potential negative impacts on jobs and competition, particularly regarding lending to small and medium-sized businesses, where Sabadell plays a significant role.