Political and commercial rejection of BBVA’s hostile bid in Sabadell due to concentration risk

BBVA’s latest bid to take control of Banco Sabadell, now with a hostile bid launched, has sparked… Many reactions in the political and economic sphere. The Catalan and Spanish governments had completely rejected the movement of the entity of Basque origin and warned of the danger of this happening. Excessive banking concentration.

he Spanish government He questioned the decision “both in form and substance” and considered that raising this public takeover bid “leads to potentially harmful effects on the Spanish financial system,” for example, because it will add more volatility and instability to the market and will reduce competition, and that This would negatively affect customers.

Several members of the Spanish executive spoke out about the BBVA announcement. Minister of Economy, Carlos’s bodyShe was quick to remind that the Spanish government “has the final say when it comes to approving the takeover,” although it did not detail the mechanisms it has put in place to stop the process.

Among the most important of these were the Second Vice President and Minister of Labor, Yolanda Diaz. The Somar leader believes that this operation is “against Spain’s interests” because it “will destroy many jobs, cause financial exclusion and further oligopoly.”

Minister of Industry and Tourism, Jordi HerrioHe added that the operation may have “undesirable effects” on regional structure and cohesion. According to the Catalan minister, the takeover offer would be negative for the system as a whole because Banco Sabadell “has a special vocation for industry and SMEs.”

“Complete opposition” to the government

The government has also expressed its “total opposition” to the hostile takeover, and has already claimed in a letter to the European Commission and the National Markets and Competition Commission that it is avoiding the process.

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Head of the General Government, Peter AragonesHe noted that banking concentration would constitute a “threat to competition” and that it could not proceed because, among other things, it would make access to credit more difficult and would cause “irreparable damage” to the Catalan economy.

Minister of Economy, Natalia MaasHe warned that competition authorities should not allow this, and says such a move could mean At the expense of competition, jobs and Catalonia’s financial ecosystem.

In statements to the Catalunya Informatica website, Mas warned of the danger posed by banking concentration, both for clients and especially for companies, which may… Fewer credits and more expensive.

Banco Sabadell has been headquartered in Alicante since 2017, and Generalitat Valencena has also publicly expressed its rejection of the tender offer. On the other hand, the Basque government imposed silence on the operation led by the Bilbao-based organization BBVA.

The European Central Bank will analyze it on the basis of solvency and prudence

Vice President of the European Central Bank (ECB), Luis de GuindosHe explained that the entity must authorize the purchase of Sabadell by BBVA based on the principles of solvency and “absolute prudence,” because what is required is the stability of the financial system, according to what he pointed out.

He added, “The European Central Bank must authorize this, and it always does so on the basis of the solvency principle and the precautionary principle. What we are looking for is the stability of the financial system in the euro zone, and Spain is an important country.”

However, De Guindos avoided commenting on the Spanish government’s rejection of BBVA’s hostile takeover bid on Thursday.

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The division is with the employer

Presidents excitement from work SMEs in Catalonia will be the biggest losers from Sabadell’s tender because they will be left “orphan” to access financing, the Catalonia company has warned. The employer maintains the same position of disapproval that it had already expressed when BBVA’s offer to merge with Sabadell became known and was rejected.

And also the employer blind It rejected the hostile takeover because it believes that reducing the financial market will affect the financing and continuity of small and medium-sized companies. Javier Panes, president of the Terrassa Employers Association, expressed his regret An entity born in Vales can be lostwhich has its headquarters in Sant Cugat and has a very close connection with the Catalan productive fabric.

Bim He referred to it in terms very similar to the rest of the political and commercial actors: he opposed it “directly” and “in form and substance.” Its president, Anthony Canetti, emphasized that “SMEs are the biggest losers from this process” because, he said, it means more concentration and more difficulties in obtaining financing.

On the other hand, from the Spanish Employers Association, President chief executive officerAntonio Garamendi emphasized that companies “have the freedom to make offers or not” and it is necessary to “respect the decisions of both parties and shareholders.” It must be taken into account that the two banking entities are partners in the CEO, and for this reason, Garamendi stressed that this process remains in the “private sphere”.

Banco Sabadell rejected BBVA’s offer, which has now made a hostile takeover bid (EFE/Toni Albir)

Concern among unions

BBVA’s takeover of Banco Sabadell has created uncertainty for unions, who are demanding guarantees that it will not affect… Templates

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the Union Workers committees He expressed “grave concern” and warned that this could be “the first wave of a new wave of banking concentrations.”

Secretary General, Unai SordoHe called for “full labor and employment guarantees for employees of both banks” and called for regulating competition in the financial sector to avoid heading towards an “oligopoly model.”

from her side, UGT He stressed that he would not allow the molds to be “the cost of this process” and warned that he would not accept “coercive measures” because, as he stated, the two entities had just delivered record profits during 2023 and the first quarter of 2024.

The union demands closure “soon.” Collective banking agreement With a “real” wage increase in line with the CPI he insists this would “provide a minimum legal framework for dealing with any business changes resulting from this process with safeguards”.

She also loves entities Asufin Users Association They warned of office closures and job losses, which the association estimates at up to a third of the total. In Catalonia, Sabadell has 340 offices and about 5,000 employees, and BBVA has more than 400 branches and about 4,000 employees.

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