BBVA attack on Sabadell
Santacro recalls ‘risk of reduced credit supply’ if merger between entities proceeds
Barcelona“The main source of concern is the supposed risk of a decrease in the supply of credit resulting from increased banking concentration, which in the specific case of Catalonia could reach very high limits.” It is one of the phrases highlighted in the letter sent on Monday by Josep Santacreu, president of the Barcelona Chamber, to Cani Fernández, president of the National Commission for Markets and Competition (CNMC) to express the opposition of the Council of Chambers of Catalonia to the takeover offer proposed by BBVA for Sabadell.
Santacro explains in his letter that the reasons for this concern about a possible merger that would eliminate the original Valé Bank are “widely shared by the entire economic and commercial fabric of Catalonia, represented by the chambers”, as they have been able to verify “in multiple conversations with entrepreneurs of different sectors and business sizes” in recent months.
The president of the Council of Chambers of Fernández (who will have a role in the tender because at some point he will have to evaluate whether the CNMC gives the green light to the operation) explains that “in the case of Banco Sabadell, there are unique features in the circumstances in which it goes beyond the usual defense criteria of competition, because it is a financial institution very specialized in lending to small and medium-sized companies.
In his letter, Santacro insists on the “intangible value” created in the network of relationships and knowledge associated with people “on both sides of the bank-company relationship.”
The Chamber’s president also defends the “European integration project initiated by Sabadell” with the purchase of TSB “which offers abroad a culture of service to SMEs from a strong local base”.
In recent months, Cani Fernández has given ambiguous messages about the CNMC’s position on a merger that would leave the state with just three large entities (Santander, BBVA and CaixaBank) and which would lead to a lack of competition in regions such as Catalonia. Fernández has stated that “fewer banks does not mean less competition”, although there is no official position yet from the body he heads.
The chamber’s stance comes two weeks after Bemek also spoke out against the tender.
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