Spanish Prime Minister Pedro Sánchez has announced that the proposed takeover of Banco Sabadell by BBVA will only be approved if it serves the “general interest.”
In a highly unusual move for this type of corporate operation, the government has decided to open a public consultation process on the matter, El Pais reported.
The public consultation aims to gather input from citizens, associations, and organizations potentially affected by the transaction. While such consultations are a standard feature in the legislative process, applying this mechanism to a takeover bid (OPA) is unprecedented in Spain.
The consultation will remain open for 15 working days, during which stakeholders can submit their views to the government. All submissions will be confidential and non-binding.
Why Is This Takeover Significant?
If approved, the BBVA-Sabadell merger would create Spain’s second-largest bank. BBVA argues that the acquisition will result in a stronger, more competitive, and more profitable financial institution.
However, the operation has drawn criticism from multiple sectors. Minister Yolanda Díaz has warned that the merger could lead to as many as 5,000 job cuts, citing redundancies between the two banks. The People’s Party (PP) has expressed skepticism as well, stressing the need to protect competition and ensure “the best possible conditions” for citizens and small business owners.
What Has the Competition Authority Said?
The National Commission on Markets and Competition (CNMC) has already approved the deal, albeit with certain conditions. Now, the Spanish government is seeking to determine whether the takeover aligns with the broader public interest.
This step underscores the political and economic significance of the operation and highlights growing concerns over consolidation in the banking sector and its social impact.
