The Hostile takeover of BBVA to absorb the Sabadell Bank has been received with suspicion by almost all the political forces in the country. The effects that the operation could have on banking competition, employment or the economy raise doubts among the main national parties. Especially among the Catalan political forces, where the rejection is almost unanimous with the regional elections two days away in a community where Sabadell has a strong presence (its corporate headquarters is located in Sant Cugat del Vallés).
Those doubts have also moved to the markets, which have punished BBVA given the uncertainty surrounding what would be the first hostile takeover attempt in the banking sector in more than 40 years. The Bilbao-based bank lost 6.7% of its stock market value in a single session on Thursday, in which Sabadell closed with a rise of 3.2%.
The decision taken by BBVA to bypass Sabadell’s board of directors and negotiate directly with the shareholders of the Catalan bank has not pleased the central government at all. The Executive has raised the tone after learning that the channels will continue through non-friendly means. The Minister of Economy, Carlos Bodyrecalled on Thursday that The final word to authorize the bank merger lies with your department. After, Maria Jesus Monterofirst vice president, went further and stated that the Government “he is not going to authorize the operation.”
For its part, the junior partner of the coalition He assured that the Government will intervene to stop a movement that represents “a very high risk of banking concentration.” “We must stop this takeover and defend a banking model that has nothing to do with what we are seeing today,” defended the second vice president, Yolanda Díaz, on Thursday.
In the main opposition party, the hostile takeover also raises doubts, although the tone is moderate. The PP shows its respect for the agreements that private companies may reach and prefers to wait for the regulators to rule, according to popular sources.
However, the blue formation believes that the important thing is ensure that the operation “does not harm the general interests of jobs, the rights of clients and users of the entities”. “We understand the concern that may arise from any operation that does not conform to this way of proceeding between administrations, institutions, SMEs and savers,” the aforementioned sources add.
Talking about VoxSantiago Abascal has ruled out positioning given the “little information” that, in his opinion, still exists about the operation. However, Abascal has pointed out that the concentration of power, whether political or banking, “normally goes against the rights of citizens.”
Union in Catalonia two days before the elections
The attempted hostile merger led by BBVA has managed to unite almost all the Catalan forces just two days before the regional elections. The current president of the Generalitat, Pere Aragonés, is concerned about the risk of Catalonia losing a decision-making center. He also warns of the impact on access to credit that it could have for Catalan companies and the loss of jobs it could cause.
The Catalan Generalitat has already begun to mobilize to stop the operation. The counselor of Economy, Natàlia Mas, wrote letters on Thursday to the president of the CNMC, Cani Fernández, and to the European Commissioner for Competition, Margrethe Vestager to block the movement.
In the rest of the Catalan political spectrum, the rejection has been intense. The candidate of PSC to the Generalitat, Salvador Illa, pointed out that the fact that it is a “hostile” takeover “already indicates that we are not on the right track.” “I don’t see it. First, for a matter of competition, it is an excessive concentration in the financial sector,” he added.
The candidate of PP to preside over the Generalitat, Alejandro Fernández, raised the tone in comparison with the national leadership and He openly stated that he does not like the operation. “I am greatly concerned that the hostile takeover bid for Sabadell will negatively affect Catalan SMEs and free competition,” he said.
For its part, the leader and candidate for Junts, Carles Puigdemonthe asked “answer with all your might” BBVA’s takeover bid and denounced the existence of “a strategy to liquidate Catalan banking activity.” The Comuns Sumar candidate, Jessica Albiachwarns that, if the merger succeeds, the banks “will be able to put whatever interest they want without any type of competition.”
The operation The Generalitat Valenciana does not like it either. Sabadell also has a strong presence in the community, where it has its headquarters in the province of Alicante. The president of the Generalitat, Carlos Mazón, appeared on Thursday “absolutely against” a merger that, he said, “destroys value, work and territory” and that “goes against the Valencian Community.”
BBVA defends itself
Given the wave of criticism that BBVA received for the terms under which it plans to buy Sabadell, its president, Carlos Torres, came out in defense of the operation. “We fully trust that the Government and the rest of the authorities “They will end up appreciating the operation for its value.”Torres said in a press conference after the announcement of the hostile takeover bid.
The merger of both entities, continued the president of BBVA, “creates an entity that It will support the Spanish economy much more, with a greater capacity to generate credit and remunerate the shareholders” among whom there are many families and savers, he added.
Specifically, BBVA defends that thanks to the absorption of Sabadell, it will have an additional capacity to grant credit to families and companies in Spain of 5,000 million euros. “I trust that the Government will appreciate the value it has when we have the opportunity to explain it,” Torres concluded.
