Last May, BBVA launched a hostile takeover bid for 100% of the shares of Banco Sabadell, after that entity rejected a friendly proposal.
The European Central Bank (ECB) has informed BBVA of its decision not to oppose the acquisition of Banco Sabadell as a result of its proposed public takeover bid (OPA), as reported to the National Securities Market Commission (CNMV).
The lack of opposition from Frankfurt was one of the milestones BBVA had to achieve to be able to carry out the takeover bid. That same week, it also received approval from British regulators for its indirect control of TSB, a subsidiary of Sabadell.
The ECB’s ‘green light’ was something the market expected, as the investigation focuses on solvency and prudential criteria. In concrete terms, the central bank has examined whether the project presented by BBVA will have sufficient capital and liquidity levels and whether it will be able to maintain them over time. Its governance model and ability to generate profits have also been examined.
Theoretically, the CNMV, with the approval of the ECB, could already approve the takeover bid and give BBVA the opportunity to open the acceptance period, which could range from 15 to 70 days. However, the usual procedure in practice is that the approval of the takeover bid by the CNMV does not take place before the CNMC has ruled on the merger.
In any case, if the CNMV’s approval comes earlier, the bank can open the acceptance period without needing the “approval” of the CNMC, but the body chaired by Cani Fernández will determine the effectiveness of the operation, since BBVA’s intention is to acquire 100% of Sabadell and merge both entities.
Last May, BBVA launched a hostile takeover bid for 100% of the shares of Banco Sabadell, after that entity rejected a friendly proposal.
The entity is offering Sabadell shareholders an exchange of one new security for every 4.83 Sabadell securities. Since the announcement of the takeover bid, BBVA has obtained approval for the operation from the competition authorities of several countries where Banco Sabadell is present (United States, France, Portugal and Morocco).
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
