The chairman of Spain's Sabadell has urged the government to ensure transparency regarding the hostile takeover bid from rival BBVA, emphasizing the need for shareholders to have all pertinent information before deciding whether to tender their shares.
"By the time the shareholders have to decide, they should have all the information about the conditions the government might impose on this deal," Josep Oliu stated ahead of Sabadell's shareholders meeting.
The government has previously valued the deal at over 12 billion euros ($13 billion) when it was announced in April, citing potential impacts on competition and jobs.
Oliu indicated that the government would define the type of financial system it envisions for Spain and assess the social consequences of the deal, particularly its effect on financing for small businesses. He noted, "Based on this, the government can and will do whatever is convenient," mentioning that the bid could be presented to Sabadell shareholders in July or possibly September.
While the government cannot prevent a bid from being made, it holds the final say on whether a merger proceeds. The economy ministry declined to comment on the matter.
Oliu's remarks followed comments from Sabadell's Chief Executive Cesar Gonzalez-Bueno, who expressed that he did not anticipate the competition watchdog to be "too harsh" on BBVA when it releases its review of the proposed deal soon.
Ahead of the shareholders meeting, Gonzalez-Bueno mentioned his belief that the remedies proposed by BBVA were adequate.
Oliu also specified that Sabadell has no intention of competing with U.S. or European lenders, unlike BBVA, which has a significant presence in emerging markets such as Mexico and Turkey.
BBVA's offer is contingent on securing approval from investors holding a majority of Sabadell's shares. Approximately half of Sabadell's shareholders are retail investors, making their votes crucial.
Gonzalez-Bueno noted his expectation that small shareholders may reject the offer, while Oliu remarked that he does not foresee large institutional investors, such as BlackRock, Dimensional, or Vanguard, making decisions until all details are clarified in the bid prospectus, which the stock market supervisor has indicated might be approved following the government's assessment.
"We survey them weekly and generally, they have no intention of tendering their shares, as 80% of our minority shareholders are also customers," Gonzalez-Bueno added.