Spain to launch public consultation on BBVA-Sabadell takeover bid

The Spanish government will launch a public consultation on Tuesday on BBVA's hostile takeover bid for Sabadell, Prime Minister Pedro Sánchez has announced. 

During his opening speech at the Cercle d'Economia business forum in Barcelona on Monday, the PM said they want to make a decision "with full guarantees," and therefore aim to collect opinions from citizens, associations, and organizations.

Sánchez emphasized that his goal is for Spanish companies "to grow, get bigger and be more competitive," but added that this should happen "only if it benefits the common interest of the public."

Sánchez reminded the audience that after the CNMC's (National Commission on Markets and Competition) favorable report on BBVA's bid for Sabadell, the next step is for the Spanish government to decide whether to submit the deal to the cabinet for evaluation.

They have 15 working days to do so, and Sánchez has decided to open this public consultation within that timeframe.

News of the public consultation was greeted positively by Sabadell chair Josep Oliu, the Catalan bank's minority shareholders, and business associations Foment and Pimec.

Banks leaders meet briefly

Oliu and his counterpart at BBVA, Carlos Torres, had a brief conversation at the Cercle d'Economia conference.

The two executives crossed paths in Barcelona for the first time since the green light from the National Commission on Markets and Competition (CNMC), which came last Wednesday.

Foment calls on government to halt deal

The Foment del Treball business association added their voice to the criticism of the National Commission on Markets and Competition (CNMC)'s approval of BBVA's takeover bid for Banc Sabadell, labeling it "disappointing, insufficient, and hasty."

The Catalan business association is calling on the Spanish government to "halt" the operation and has raised concerns about its potential impact on small and medium-sized enterprises (SMEs), estimating the damage at €70 billion.

"We appeal to strategic, general, and territorial interests," Foment del Treball's president, Josep Sánchez Llibre, said to the press before the Cercle d'Economia conference got underway.

Working week

In addition, he also gave his opinion on the proposed reduction of the working week to 37.5 hours, calling it "the most serious mistake" of any government since Spain's return to democracy.

The measure is set to be approved by the Spanish cabinet on Tuesday, but it still needs to pass a vote in Congress to become law.

'Europe: wake up call?'

'Europe: wake up call? How to respond in a moment of political disruption' is the title of the 40th edition of the Cercle d'Economia conference, which runs from Monday until Wednesday at the Palau de Congressos de Catalunya in Barcelona.

Despite not being on the official agenda, the BBVA takeover bid for Banco Sabadell will loom large over the discussions, providing a backdrop to the issues addressed in the presentations.

Attendees at the conference include Spanish PM Pedro Sánchez; Spain's Minister of the Economy, Carlos Cuerpo, the Vice-President of the European Commission, Teresa Ribera, and the President of the European Council, António Costa.

Catalan President Salvador Illa will close the conference in a conversation with Cercle d'Economia president, Jaume Guardiola.