MADRID (Reuters) -Spanish bank BBVA’s proposed acquisition of smaller rival Sabadell should not be subject to further scrutiny by the government as it would benefit shareholders, clients and businesses, according to BBVA’s chairman.
Carlos Torres’ comments late on Tuesday to radio station Cadena Cope came after the government, which is opposed to the bid, launched a non-binding public consultation on the matter, which analysts say is another sign of political reluctance.
Economy minister Carlos Cuerpo has until May 27 to take the deal to the cabinet for a new analysis of the possible effects after Spain’s competition watchdog last month approved the proposed deal – which currently values Sabadell at around 15 billion euros ($17 billion) – subject to several remedies.
“We believe that the Economy Minister should not submit the operation to the (cabinet) because, far from negatively affecting any element of general interest, the operation is good not just for shareholders – with a very compelling proposal -, but also for clients and companies,” Torres said.
If the minister refers the deal to the cabinet, the government then has a month to make a final decision whether or not to approve the deal with or without conditions.
Torres said that if Cuerpo did not submit the proposed deal to the cabinet, “then we would move quickly to (the bid’s) acceptance period, with the markets supervisor needing to previously authorise the takeover prospectus.”
Under Spanish law, the government cannot stop a bid from being made, but it has the final word on whether a merger goes ahead.
($1 = 0.8884 euros)
(Reporting by Jesús Aguado. Editing by Inti Landauro and Mark Potter)
