BBVA Acquisition of Banco de Sabadell SA Referenced to Spanish Council of Ministers

BBVA launched a hostile takeover bid for its Spanish counterpart, Banco de Sabadell SA, in May 2024, with the Spanish Minister of Economy, Trade and Business referring the proposed acquisition to the Spanish Council of Ministers. This move comes after Spain's National Commission on Markets and Competition approved the deal in April, subject to certain conditions. The Council of Ministers now has 30 days to issue a ruling on the acquisition, which could set conditions or block the merger of the two banks.

Key Takeaways:

BBVA launched a takeover bid for Banco de Sabadell SA in May 2024, drawing pushback from Spanish Prime Minister Pedro Sanchez, who called the bid "hostile".
The Spanish National Commission on Markets and Competition approved the deal in April, subject to conditions, including BBVA keeping a certain number of branches open and maintaining commercial terms for certain customers.
The Council of Ministers cannot block the acquisition outright but can set conditions or stop a legal merger of the two banks.
The body has 30 days to issue a ruling on the acquisition.
BBVA shares closed up 0.8% at EUR13.55 in Madrid on Tuesday.
Sabadell shares closed up 0.3% at EUR2.81.

Statistics:

30 days: The time frame given to the Council of Ministers to issue a ruling on the acquisition.
0.8%: The increase in BBVA shares on Tuesday.
0.3%: The increase in Sabadell shares on Tuesday.
EUR13.55: The closing price of BBVA shares in Madrid on Tuesday.
EUR2.81: The closing price of Sabadell shares in Madrid on Tuesday.
May 2024: The month in which BBVA launched the takeover bid.

Sources:

Banco Bilbao Vizcaya Argentaria SA
Spanish Minister of Economy, Trade and Business
Spanish National Commission on Markets and Competition
Alliance News