3 days ago
Spanish government to examine BBVA's bid for Sabadell
MADRID, May 27 (Reuters) - The Spanish government will examine BBVA's ( opens new tab proposed acquisition of Sabadell ( opens new tab, the Economy Ministry said on Tuesday, a potential setback for the Spanish lender as it tries to close in on buying its smaller rival.
Madrid has so far opposed the deal, which BBVA first announced 12 months ago and which values Sabadell at more than 14 billion euros ($15.9 billion), because of the risk it could lead to job losses.
Economy Minister Carlos Cuerpo has referred the deal to the cabinet, which now has a month to decide whether to approve the deal with or without conditions on the grounds of common interest. Spain's antitrust watchdog, opens new tab has already authorised the takeover, subject to several remedies.
The government recently launched a non-binding public consultation to gather the views of citizens and businesses on the bid, an unprecedented move for such transactions.
Under Spanish law, the government cannot stop a bid from being made, but it will still have the final word at a later stage on whether to authorise a full merger.
($1 = 0.8828 euros)
