Spain Cabinet to Conduct Further Review of BBVA's Bid for Sabadell

By Elena Vardon

The Spanish government plans an additional review of Banco Bilbao Vizcaya Argentaria's hostile bid for smaller peer Banco de Sabadell, 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.

A Sabadell spokesperson said many organizations showed an interest in the consequences of the transaction and that the bank remained focused on its own plans. BBVA said it was notified of the decision.

BBVA set its sights on Catalan lender Sabadell in early May last year to bolster its presence in its home market and went hostile in its pursuit of the smaller lender after it encountered opposition from its management, sparking political backlash. Government officials and union leaders said the deal would harm competition, employment and financial inclusion.

The Economy Ministry's decision follows a 15-day window after Spain's competition watchdog CNMC--which had moved the deal into an extended review in November--approved a set of remedies put forward by BBVA, conditionally clearing the takeover.

The Spanish cabinet will now have a 30-day deadline to issue its opinion on the deal, the ministry said.

The state can't stop the purchase of Sabadell shares by BBVA but can block a legal merger and impose more conditions on the acquirer. The value of the initial $12 billion-plus deal has fluctuated given the share component of the offer ties it to the stock price of both banks.

Write to Elena Vardon at [e-mail]

(END) Dow Jones Newswires

05-28-25 0133ET