Latest news with #BancoSabadell
Yahoo
17 hours ago
- Business
- Yahoo
European Commission challenges Spain's BBVA-Sabadell merger block
The European Commission (EC) has taken legal steps against Spain, challenging its decision to block the BBVA and Banco Sabadell merger. According to the EC, Spain's actions contravene European Union rules, potentially impacting the region's banking consolidation efforts. The EC has sent a formal notice to Spain, demanding a review of its decision to impose a three-year moratorium on the BBVA-Sabadell merger. In a statement, the EC said it 'considers that certain provisions in the Spanish banking law and in the Spanish competition law, which grant the Spanish government unrestricted powers to intervene in mergers and acquisitions of banks, impinge on the exclusive competences of the European Central Bank and national supervisors under the EU banking Regulations'. The executive branch of the bloc went on to say that it also 'considers that those broad discretionary powers constitute unjustified restrictions to the freedom of establishment and of capital movements'. Spain's economy minister Carlos Cuerpo, as reported by Reuters, said the country's regulations are in line with those in Europe and that the infringement procedure will not affect the cabinet's decision. "These are two parallel we hope that in the end our legal and technical position will prevail, namely that these two regulations are perfectly aligned and that the government's actions have been entirely appropriate," Cuerpo was quoted as saying. Under Spanish law, while the government cannot prevent BBVA from purchasing Sabadell's shares, it retains the authority to decide on the merger's progression. Despite the conditions, BBVA has decided to proceed with its €13bn ($15.11bn) acquisition bid, with the deal currently awaiting approval from Spain's stock market supervisor. Spain now has two months to respond to the Commission's concerns. If the response is unsatisfactory, Brussels may issue a reasoned opinion and could eventually refer the case to the Court of Justice of the European Union. Euro zone banking supervisors have advocated for banking consolidation to bolster the sector, though such deals have been limited due to political efforts to safeguard jobs and domestic banks. The Commission said: 'Consolidations in the banking sector benefit the EU economy as a whole and are essential for the achievement of the Banking Union. These mergers also ensure that capital is allocated efficiently across the EU and that citizens and businesses have access to financial products at competitive prices – a key objective of the Savings and Investments Union.' Both BBVA and Sabadell have declined to comment on the EC's legal action. "European Commission challenges Spain's BBVA-Sabadell merger block " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Euractiv
3 days ago
- Business
- Euractiv
Brussels launches legal action against Spain over bank merger powers
MADRID – The European Commission has launched an infringement procedure against Spain for granting the government sweeping powers to block bank mergers, a move Brussels says violates EU law. The move follows the government of Prime Minister Pedro Sánchez's decision to halt a proposed takeover of Banco Sabadell by BBVA and Banco Sabadell for three years. With €719.45 billion in assets, BBVA is Spain's second-largest bank while Banco Sabadell ranks fourth, with €244.42 billion. In a formal letter sent to Madrid, the Commission said the legal framework used to block the proposed merger breaches core EU rules on the freedom of establishment and movement of capital. The Spanish authorities now have two months to respond. If the reply is deemed unsatisfactory, the Commission may escalate the case by issuing a reasoned opinion, Euractiv's partner Servimedia reported. The EU executive also criticised Sánchez government for overruling the Spanish Competition Authority (CNMC), which had conditionally approved the bid. EU sources cited by Spanish media say a 2014 banking law and its 2015 implementing decree give the economy ministry excessive discretionary power over banking operations – an area that falls under the exclusive competence of the European Central Bank. According to the Commission, this undermines EU financial regulation and legal certainty for cross-border banking deals. (cs, de)
Bloomberg
3 days ago
- Business
- Bloomberg
Spain Chided by EU for Hindering BBVA's €13 Billion Sabadell Bid
By and Jorge Zuloaga Save European Union watchdogs have fired off a legal warning to the Spanish government for hindering BBVA SA's €13 billion ($15.1 billion) bid for rival Banco Sabadell SA. The European Commission alleges that a series of onerous conditions imposed on the deal violate EU single market rules that allow freedom of movement of capital in the bloc unless there are exceptional circumstances.
Bloomberg
08-07-2025
- Business
- Bloomberg
BBVA Cuts Expected Savings From Sabadell Deal, Expansion Says
BBVA SA has trimmed internal estimates of savings and benefits from a potential takeover of Banco Sabadell SA, Expansion reported, after the Spanish government blocked a full merger for several years. Spain's second-largest bank now expects synergies of about €300 million ($353 million), down from an earlier calculation of €850 million, the newspaper said, citing people with knowledge of the matter it didn't identify.
Bloomberg
04-07-2025
- Business
- Bloomberg
BBVA to Go Ahead With Sabadell Bid Despite TSB Sale
BBVA SA is set to push ahead with its takeover bid for Banco Sabadell SA, even after its rival's move this week to sell its UK unit, according to people familiar with the mater. BBVA and its advisers see Sabadell's decision to sell TSB as neutral for its own deal and are keen to make a tender offer to the target's shareholders in the coming months, according to the people, asking not to be named discussing private information.
