Latest news with #Sabadell
Reuters
2 days ago
- Business
- Reuters
EU warns Spain's government not to hinder BBVA's bid for Sabadell
LONDON/MADRID, May 28 (Reuters) - The European Union has warned the Spanish government against trying to prevent banking consolidation it says is needed to create strong lenders, after Madrid announced a ministerial review of BBVA's ( opens new tab bid for rival Sabadell ( opens new tab. Spain's government has opposed BBVA's hostile move since it was made more than a year ago, citing potential risks to jobs. The economy minister Carlos Cuerpo announced the rare move on Tuesday of examining BBVA's offer, which has been approved by the European Central Bank and Spain's competition regulator. The government cannot stop BBVA from buying shares in Sabadell but it can block a full merger. Now it has until the end of June to decide whether to approve the bid and whether to set conditions relating to the implications for jobs and branches. Olof Gill, the European Commission's spokesperson for financial services, said that there was no basis to stop a deal if it met standards on risks and competition, particularly as consolidation was vital to build stronger European lenders and in turn make the EU's Savings and Investment Union a success. "It is important that banking sector consolidation can take place without undue or inappropriate obstacles being imposed," he said. Cuerpo said he was not concerned about the EU's warning. "We are fully respectful of the procedure, the deadlines, and the involvement of the various institutions that are part of this process," he told reporters. The past year has seen a jump in European banking M&A activity, as lenders flush with cash look to make deals that industry supervisors and executives hope can create banks better able to compete with rivals in the United States and Asia. However a number of deals have run into problems with politicians. UniCredit's ( opens new tab move on Commerzbank ( opens new tab is opposed by Berlin and Italy recently imposed conditions on UniCredit's offer for its peer Banco BPM. BBVA says it wants to buy Sabadell to build the second largest lender in Spain, and agreed with the competition watchdog it would limit branch closures and maintain capital lines to small and medium-sized clients. Sabadell says the deal will damage competitiveness, particularly in the area of lending to small and medium-sized enterprises, where the bank is strong.
Reuters
3 days ago
- Business
- Reuters
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)
Reuters
21-05-2025
- Business
- Reuters
BBVA says no need for more government scrutiny of Sabadell bid
MADRID, May 21 (Reuters) - Spanish bank BBVA's ( opens new tab proposed acquisition of smaller rival Sabadell should not be subject to further scrutiny by the government as it would benefit shareholders, clients and businesses, according to BBVA's chairman. Carlos Torres' comments late on Tuesday to radio station Cadena Cope came after the government, which is opposed to the bid, launched a non-binding public consultation on the matter, which analysts say is another sign of political reluctance. Economy minister Carlos Cuerpo has until May 27 to take the deal to the cabinet for a new analysis of the possible effects after Spain's competition watchdog last month approved the proposed deal - which currently values Sabadell at around 15 billion euros ($17 billion) - subject to several remedies. "We believe that the Economy Minister should not submit the operation to the (cabinet) because, far from negatively affecting any element of general interest, the operation is good not just for shareholders - with a very compelling proposal -, but also for clients and companies," Torres said. If the minister refers the deal to the cabinet, the government then has a month to make a final decision whether or not to approve the deal with or without conditions. Torres said that if Cuerpo did not submit the proposed deal to the cabinet, "then we would move quickly to (the bid's) acceptance period, with the markets supervisor needing to previously authorise the takeover prospectus." Under Spanish law, the government cannot stop a bid from being made, but it has the final word on whether a merger goes ahead. ($1 = 0.8884 euros)
Reuters
14-05-2025
- Business
- Reuters
Spain's BBVA could cut up to 2,500 jobs after Sabadell integration, Expansion says
MADRID, May 14 (Reuters) - Spain's BBVA ( opens new tab could cut up to 2,500 jobs after the acquisition and a subsequent integration of smaller rival Sabadell ( opens new tab, newspaper Expansion reported on Wednesday. The preliminary calculations from BBVA would be equivalent to slightly less than 6% of the current combined workforce of around 42,000 employees in Spain, according to unidentified sources cited by the paper. The government opposes the hostile takeover bid, currently worth more than 14 billion euros ($15.66 billion), and rejected by Sabadell, on concerns it could lead to job losses. The number of planned job cuts could change depending on whether or not BBVA is allowed to merge the two banks and the potential conditions imposed by the government, Expansion said. BBVA declined to comment. Under Spanish law, the government cannot stop a bid, but it has the final word on whether a merger goes ahead. In the case the government blocked a full merger, BBVA might be able to integrate Sabadell at a later stage and in the meantime keep Sabadell as a separate unit. Spain's competition watchdog approved the proposed deal with remedies last month while the government opened last week a non-binding public consultation on the matter. BBVA has not disclosed how many jobs would be cut, only saying it will close 300 branches. As part of its targeted 850 million euros in cost savings, BBVA has said that 450 million euros would be administrative and IT savings, 300 million euros related to job cuts and 100 million euros in funding savings. The possibility that BBVA could end up with a majority share in Sabadell without an outright merger has prompted questions about whether BBVA can deliver the synergies. ($1 = 0.8938 euros)
Yahoo
13-05-2025
- Business
- Yahoo
Spanish lender Unicaja denies report it has held merger talks with Sabadell
(Corrects syntax in paragraph 1) MADRID/BANGALORE (Reuters) -Spanish lender Unicaja denied on Monday that it held talks about a merger with Banco Sabadell after Bloomberg News reported the lenders held informal discussions for it. The report also said Sabadell's executives had sounded out some key shareholders of Unicaja earlier this month about a potential deal as it sought to fend off a hostile takeover by larger rival BBVA SA. A Unicaja's spokesperson, who denied merger talks between both banks, said it was not aware of any informal talks with the lender's shareholders. Unicaja's largest shareholder is the foundation of Unicaja with a 31.2% stake. The foundation of Unicaja was not immediately available for a comment. Earlier on Monday, another Spanish lender Abanca had also denied a report in the Expansion newspaper that said Sabadell was exploring a possible merger with it. Sabadell declined to comment. Sabadell and the Spanish government have opposed the hostile takeover by BBVA due to concerns it could reduce competition and lead to job losses. The government launched a non-binding public consultation on the matter last week and Economy Minister Carlos Cuerpo said that the process will conclude on May 16. Last month, Spain's competition watchdog approved the takeover bid subject to several remedies. ($1 = 0.9017 euros) Sign in to access your portfolio
