Spain's stock market regulator admits BBVA's takeover bid for Banc Sabadell for processing

CNMV states that this step does not imply any decision on the approval of the offer

Banc Sabadell office in Barcelona
Banc Sabadell office in Barcelona / Jordi Borràs
Catalan News

Catalan News | @catalannews | Barcelona

June 11, 2024 12:46 PM

June 11, 2024 03:06 PM

Spain's stock market regulator (CNMV) has admitted to processing BBVA's request for approval of its takeover bid for Banc Sabadell.

However, in a statement released on Tuesday, the regulator noted that this step does not imply "any pronouncement" on the resolution regarding the authorization of the offer.

The regulator points out that the Commission will not authorize the financial transaction until the "non-opposition" of the European Central Bank (ECB) is confirmed. 

The CNMV's response comes three weeks after BBVA formalized the takeover bid by submitting the authorization request. 

In order to proceed with its acquisition plans, the Basque bank must obtain the approval of the CNMV, the ECB and the National Commission for Markets and Competition (CNMC). 

The bank confirmed its intentions to acquire the Catalan bank shortly after Banc Sabadell's board of directors, chaired by Josep Oliu, rejected a friendly merger.

BBVA's offer to Banc Sabadell

The BBVA's offer includes a 30% premium per share and a guarantee of "total commitment" to Catalonia

BBVA also offers Sabadell three seats on its board of directors, one of them as vice president

Its proposal includes having two corporate headquarters, maintaining Sabadell's current offices in Sant Cugat, just outside Barcelona. 

BBVA said it would maintain the Sabadell brand in areas where there is "relevant commercial interest."

Shortly after the bid was announced, the Spanish government and Catalan governments rejected it.

BBVA had already attempted to acquire Sabadell in the past, with a negotiation, but because of the negative outcome of such talks, the Basque bank decided to go through with a hostile takeover bid.