Latest news with #hostilebid
Reuters
17-07-2025
- Business
- Reuters
EU challenges Spain for hindering BBVA's Sabadell bid
MADRID, July 17 (Reuters) - The European Commission officially challenged the Spanish government on Thursday over its attempts to hinder Spanish bank BBVA's ( opens new tab hostile bid for smaller rival Sabadell ( opens new tab. A letter of formal notice, which opens an infringement procedure, was sent to Madrid after the government last month said BBVA would not be allowed to integrate its operations with Sabadell for at least three years as one of the conditions imposed on the more than 13 billion-euro ($15.05 billion) offer. The letter said that, in the Commission's view, provisions in Spanish banking and competition laws granting the government unrestricted powers to intervene in mergers and acquisitions "impinge on the exclusive competences of the European Central Bank and national supervisors under the EU banking regulations". The Commission's letter, which comes after a warning in May not to hinder the bid, also said that it considered Madrid's broad discretionary powers as unjustified restrictions on the freedom of capital movement. An economy ministry spokesperson said the regulations have been in force for several years and applied on several occasions, and the government intended to explain and clarify any legal or technical differences as part of constructive cooperation with the EU institutions. Spain has now two months to respond and address the shortcomings raised by the Commission. In the absence of a satisfactory response, Brussels may decide to issue a reasoned opinion and urge Spain to comply and could ultimately refer Spain to the Court of Justice of the European Union. Euro zone banking supervisors have called for banking consolidation to strengthen the sector, but deals have been scarce as politicians have sought to preserve jobs and protect home-grown lenders. The Commission also said consolidation was essential for achieving a bloc-wide banking union. BBVA decided to proceed with its bid despite the condition imposed by the government and the deal is now waiting for approval from Spain's stock market supervisor. BBVA and Sabadell declined to comment on the European Commission's move. ($1 = 0.8639 euros)
Reuters
17-07-2025
- Business
- Reuters
Breakingviews - Couche-Tard should have gone hostile on Seven & i
HONG KONG, July 17 (Reuters Breakingviews) - Be bold and go hostile, or don't bother at all. That's the message Canada's Alimentation Couche-Tard ( opens new tab is sending to foreigners eyeing acquisitions of Japanese companies. The company's withdrawal on Wednesday of its $46 billion non-binding proposal to purchase convenience store operator Seven & i (3382.T), opens new tab, along with a roughly 1,500-word rebuke, opens new tab of the process, suggests it's time for buyers to stop being friendly – and for Tokyo to firm up how it wants Japan Inc to behave. Couche-Tard's bid for the 7-Eleven owner was compelling at a 47% premium to the undisturbed share price nearly a year ago, but the soft approach allowed its reluctant target to drag its feet. In Tokyo, it was no secret that the company did not want to be bought; its founding family even tried its own white knight buyout before abandoning it. So it is unsurprising that Alain Bouchard, Couche-Tard's founder and executive chair concluded "there has been no sincere or constructive engagement" after the suitor raised its offer and signed a non-disclosure agreement. Seven & i calls these barbs "mischaracterizations", but the saga evokes Japan's past bad M&A, like Toshiba's long-drawn-out sale, which activists effectively kicked off in 2017. It also confirms that subsequently introduced guidelines for fair M&A and corporate takeovers aren't worth much. These were designed to revive the $4 trillion economy after decades of deflation. Companies are not on board, however. They make a show of acting in good faith but clutch to poison pill defences, opens new tab. Even Japan's largest publicly traded firm, Toyota Motor (7203.T), opens new tab, in June emerged as a leader of a highly controversial $33 billion deal that, as the Asian Corporate Governance Association puts it, opens new tab, "exposes the persistent frailties of Japan's corporate governance regime and the enduring power of entrenched interests". Couche-Tard's decision not to go hostile no doubt stemmed from worrying doing otherwise would scare off the Japanese management team. It also faced antitrust hurdles in the United States and clamouring about the national interest in Japan. Yet there is a growing contingent of bankers and lawyers in the Asian country who view cultural issues as outdated hurdles to transformative inbound deals; they are advising their clients to take a firmer and, if necessary, hostile approach from the beginning. True, Couche-Tard succeeded in forcing Seven & i to replace its CEO with a foreigner, Stephen Dacus, and revise its standalone value creation plan. But without a suitor applying pressure, some commitments could fade over time. One of these is a 2 trillion yen ($13.5 billion) buyback over the next five years funded in part by the agreed 815 billion yen sale of the group's supermarket business to Bain Capital; another is a future stock market listing of its North American convenience store unit that targets an equity value of at least 1 trillion yen. Shareholders have concluded that Seven & i was better off with a buyer too. The stock only fell 6% on Thursday, putting it 18% above its pre-deal level. But it is languishing one-fifth below Couche-Tard's offer. The Canadians did not get what they wanted, and arguably nor did Tokyo. Neither tried hard enough. Follow Una Galani on Linkedin, opens new tab and X, opens new tab.
Wall Street Journal
28-05-2025
- Business
- Wall Street Journal
Spain Cabinet to Conduct Further Review of BBVA's Bid for Sabadell
The Spanish government plans an additional review of Banco Bilbao Vizcaya Argentaria's hostile bid for smaller peer Banco de Sabadell SAB 0.29%increase; green up pointing triangle, drawing out the yearlong takeover battle further. Spain's Ministry of Economy, Commerce and Business said late Tuesday that the offer would be referred to the cabinet on general-interest grounds other than competition, citing the potential impact of the deal on the sector, territorial cohesion and social policy among other reasons.
