Spain delays BBVA merger with Sabadell bank for three years
The cabinet approved the takeover provided that "for three years both companies maintain separate legal entities and assets, as well as independence in the management of their activity", said Economy Minister Carlos Cuerpo.
Both banks will have to remain autonomous in terms of financing and credit, human resources and their network of branches and services, he explained at a news conference.
Cuerpo said the "proportionate and balanced" decision sought to protect "general interest criteria", including finance for small and medium-sized businesses, protecting the workforces, territorial cohesion, social policies and promoting research and technological development.
The government can decide to extend the new conditions for another two years depending on how they affect the identified criteria, Cuerpo added.
The Socialist-led coalition government had previously expressed competition concerns over the hostile takeover bid, which would create a behemoth capable of rivalling European competitors HSBC and BNP Paribas.
Although it could not block the transaction, it had the power to impose restrictions that could make BBVA desist.
BBVA, Spain's second-biggest bank with an important footprint in Latin America and Turkey, launched its bid in May 2024.
The European Central Bank gave its green light in September that year and Spain's competition authority approved the operation under certain conditions in April.
Sabadell's leadership is determined to maintain the independence of Spain's fourth-biggest bank, while small and medium-sized businesses as well as consumer associations in its northeastern Catalonia region feared a resultant loss of branches and jobs.
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Local Spain
a day ago
- Local Spain
Spain delays BBVA merger with Sabadell bank for three years
The cabinet approved the takeover provided that "for three years both companies maintain separate legal entities and assets, as well as independence in the management of their activity", said Economy Minister Carlos Cuerpo. Both banks will have to remain autonomous in terms of financing and credit, human resources and their network of branches and services, he explained at a news conference. Cuerpo said the "proportionate and balanced" decision sought to protect "general interest criteria", including finance for small and medium-sized businesses, protecting the workforces, territorial cohesion, social policies and promoting research and technological development. The government can decide to extend the new conditions for another two years depending on how they affect the identified criteria, Cuerpo added. The Socialist-led coalition government had previously expressed competition concerns over the hostile takeover bid, which would create a behemoth capable of rivalling European competitors HSBC and BNP Paribas. Although it could not block the transaction, it had the power to impose restrictions that could make BBVA desist. BBVA, Spain's second-biggest bank with an important footprint in Latin America and Turkey, launched its bid in May 2024. The European Central Bank gave its green light in September that year and Spain's competition authority approved the operation under certain conditions in April. Sabadell's leadership is determined to maintain the independence of Spain's fourth-biggest bank, while small and medium-sized businesses as well as consumer associations in its northeastern Catalonia region feared a resultant loss of branches and jobs.
Local Spain
a day ago
- Local Spain
EU lawmakers vote to ban airlines from charging fees for hand luggage
Passengers travelling in Europe should be able to carry on board one personal item, such as a handbag, backpack or laptop and one small hand luggage without having to pay additional fees, members of the European Parliament transport committee concluded on Tuesday. The position aims to bring into EU law a judgement made by the European Court of justice, which ruled back in 2014 that the 'carrying of hand baggage cannot be made subject to a price supplement, provided that it meets reasonable requirements in terms of its weight and dimensions and complies with applicable security requirements'. Currently many low-cost airlines allow passengers to only take one small on-board item for free and charge extra for other hand baggage. The rules vary between airlines and different countries. Tuesday's vote appears to be good news for passengers but it is not final. The change will still have to be endorsed by all MEPs in the full parliament and green lighted by European governments in the EU Council. Airlines against the move Last year the Spanish Ministry of Social Rights and Consumption fined five airlines €179 million for such practices following a complaint by the Spanish consumer organisation OCU (Organización de Consumidores y Usuarios). Consumer groups also lodged a complaint with the European Commission arguing that the EU top court recognised hand luggage as 'an essential aspect of passengers' carriage,' said European consumer organisation BEUC. But airlines condemned Tuesday's vote as a limit to 'consumer choice' that will result in 'higher costs for millions of passengers who neither need nor use an extra trolley bag.' Airlines for Europe (A4E), the group representing major air carriers at the EU level, said that 'travelling light is the choice for hundreds of millions of European passengers'. In Spain, for instance, over 50 million passengers 'didn't need an additional piece of cabin baggage last year and had the choice not to have this included as part of their airfare," A4E said. A4E Managing Director Ourania Georgoutsakou said: 'What's next? Mandatory popcorn and drinks as part of your cinema ticket? The European Parliament should let travellers decide what services they want, what services they pay for and, importantly, what services they don't.' The measure, which would apply to all flights departing or arriving within the 27-nation European Union. Children must be seated next to accompanying passengers The proposed change to hand luggage fees was part of a package of amendments to passenger rights when travelling by air, rail, sea, coach and inland waterways put forward by the European Commission in 203. The committee also voted to ensure that children under 12 years old are seated next to their accompanying passenger free of charge. People accompanying passengers with reduced mobility should also travel with them for free, and there should be compensation rights in case of loss or damage to their equipment or injury to assistance animals, MEPs said. Italian MEP Matteo Ricci, who is in charge of the file, said the new rules aim to 'protect all passengers, with special attention to persons with disabilities and reduced mobility' and clarify the definition of free hand luggage 'up to a maximum size of 100cm.' Rules for intermediaries New rules also aim to clarify the role of intermediaries, such as ticket vendors or travel agencies, in the reimbursement of air passengers for cancellations, delays or denied boarding. According to the parliament transport committee, these companies should inform passengers at the time of booking about the full cost of the air ticket, intermediation or service fees, and the reimbursement process. This should not take longer than 14 days or, past the deadline, it will be for the air carrier to process the reimbursement within 7 days. Multimodal journey In a separate vote, MEPs also backed the proposal to introduce compensation for disruptions in journeys involving at least two modes of transport, for example plane and bus, or train, ferry and plane. If a customer buys a single contract involving multiple transport modes from one operator, and a missed connection results in a delay of 60 minutes or more, the passenger should be offered meals, refreshment and a hotel stay free of charge. 'Switching between transport modes should not mean losing protection against missed connections and assistance', MEPs said. 'Our proposals are intended to strengthen passenger confidence and encourage companies to develop more attractive multimodal offers,' said German MEP Jens Gieseke, who leads on this part. Question on compensation In parallel, the European Parliament and Council are discussing a revision of compensation rules in case of flight delays or cancellations. On Tuesday, MEPs also voted in favour of a common reimbursement form in case of travel disruption, with airlines requested to send passengers the pre-filled form within 48 hours following the problem - 'or activate alternative automatic communication channels'. They also voted on a well a defined list of extraordinary circumstances, such as natural disasters or war, under which airlines can avoid having to pay compensation.
Local Spain
5 days ago
- Local Spain
LISTED: The new flights to and from Spain this summer
If you plan on travelling to or from Spain this summer, then you're in luck because many different airlines have launched new routes for the season, connecting cities throughout Spain with Europe and beyond. EUROPEAN DESTINATIONS Jerez to Birmingham, Manchester and Leeds (UK) Jet2 has launched new routes between the Andalusian city of Jerez and Birmingham, Manchester and Leeds in the UK, starting from this May up until October 31st 2025. Reus to Glasgow (UK) EasyJet launched a new route between the small Catalan town of Reus (where Antoni Gaudí was born), which started on June 2nd. Almería to London (UK) EasyJet added a new route to London Luton from the southern coastal city of Almería, starting from June 1st, with over 14,000 seats. Madrid to Manchester (UK) EasyJet is adding a new route between the Spanish capital and Manchester, operating from June 23rd with 20,000 seats. Ryanair is offering new routes to the Hungarian capital of Budapest and Krakow in Poland from Castellón in the region of Valencia. They will begin to operate from this summer with two weekly frequencies. Barcelona to Copenhagen (Denmark) Ryanair has launched a new service between the Catalan city of Barcelona and the Danish capital this summer. Seville to Baden Baden (Germany) and Rome (Italy) Irish budget airline Ryanair has launched its summer 2025 flight schedule with two new routes from Seville to Baden-Baden in Germany and Rome Fiumicino in Italy. Palma de Mallorca to Strasbourg (France) EasyJet started connecting the Mallorcan city of Palma with French city of Strasbourg on June 4th. Palma de Mallorca to Palermo (Italy) From June 23rd EasyJet it will open a new route between the capital of Mallorca and the city of Palermo on the Italian island of Sicily. Ibiza to Milan (Italy) EasyJet will fly between Ibiza and Milan-Linate from June 24th. WORLWIDE DESTINATIONS Bilbao to New York (US) United Airlines has launched a new route between the Basque city of Bilbao and New York. The inaugural flight landed on June 1st and more flights will continue throughout the summer. There will be three weekly flights from Bilbao on Wednesdays, Fridays, and Sundays at 12:30pm, and from New York to Bilbao on Tuesdays, Thursdays, and Saturdays at 9:15pm. Barcelona to Boston (US) Delta Airlines launched direct flights between Barcelona and Boston in May which will run throughout this summer with three weekly connections. Madrid to Boston (US) Another American airline, JetBlue, also launched a new Spain-US link in May with its flight between the Spanish capital and the East Coast city. Barcelona to Halifax (Canada) WestJet is launching a new seasonal direct route between Halifax and Barcelona, starting on June 27th. It will operate four times weekly until late September. This is first-ever direct connection between Atlantic Canada and Spain.
