Spanish regulator suspends trading of BBVA and Banc Sabadell shares

Spain’s stock market regulator, the CNMV, temporarily suspended trading of BBVA and Banc Sabadell shares on Tuesday.

The decision was made ahead of an upcoming statement by Spain’s Economy Minister, Carlos Cuerpo.

In his address, Cuerpo is expected to announce whether the Spanish government will take additional measures concerning the ongoing takeover bid.

On Monday, CNMV president Carlos San Basilio had already indicated that if the government’s decision were announced during active trading hours, the shares of both banks would be suspended.

At the time of the suspension, around 12.30 pm, Banc Sabadell shares were up 1.36%, trading at €2.70, while BBVA shares had risen 2.7% to €13.10.

According to the CNMV, the suspension is a precautionary measure, "effective immediately," and will remain in place “while material information is being disclosed” about the two institutions.