BBVA Optimistic About Antitrust Approval for Sabadell Acquisition

BBVA is confident its takeover bid for Sabadell will secure antitrust approval soon. CEO Onur Genc stated that the bank provided a comprehensive list of remedies for the deal valued at over 12 billion euros. The CNMV will determine approval pending government feedback. The acquisition aims to reduce BBVA’s exposure to markets like Mexico and Turkey, projecting significant future profits.

BBVA, Spain’s prominent banking institution, expresses confidence in receiving antitrust approval for its takeover bid for smaller rival Sabadell within upcoming weeks. Chief Executive Officer Onur Genc announced this optimism on Wednesday, indicating that the institution had provided an extensive list of remedies to facilitate the transaction, valued at over 12 billion euros as of April 2023.

In November 2023, the antitrust authority mandated a prolonged Phase 2 review of BBVA’s all-share proposal for Sabadell, a process that may extend into 2025 and faces opposition from the government. Genc believes that the competition authority will soon authorize the deal, declaring, “Our conviction is that the competition authority will give the green light to the process in the next few weeks … we’re very close to the end of that process.”

The deal also warrants approval from Spain’s market supervisor, CNMV, which has stated it will await government input before rendering a decision on the authorization of the takeover prospectus. Genc emphasized that acquiring Sabadell would enable BBVA to lessen its reliance on emerging markets, particularly Mexico and Turkey, projecting profits of 2.5 to 3 billion euros in the next two to three years, provided inflation rates continue to decline.

The exchange rate currently stands at $1 equating to 0.9165 euros, adding context to the financial figures discussed. This potential consolidation of BBVA’s position is significant for its future strategy and market presence.

In summary, BBVA’s management is optimistic regarding antitrust approval for its Sabadell acquisition, anticipating a decision in the near future due to submitted remedy proposals. The potential merger aims not only to enhance BBVA’s market position but also to mitigate its exposure to volatile emerging markets. The anticipated financial outcomes underscore a strategic shift that could transform BBVA’s operational landscape.

Original Source: www.marketscreener.com