This Thursday, the Government rejected the hostile takeover launched by BBVA for Sabadell, “both in form and substance.” According to official sources from the Ministry of Economy, Commerce and Business “the operation introduces potential harmful effects on the Spanish financial system.”
After Sabadell rejected the proposal from the bank chaired by Carlos Torres, it has taken the alternative of a hostile takeover bid, an offer that has no prior agreement and has not been supported by management. “It would mean an increase in the level of concentration that could have a negative impact on employment and the provision of financial services,” is pointed out as the first factor.
“In addition, an excessive level of concentration would introduce an additional potential risk to financial stability, as indicated by the Governor of the Bank of Spain,” in reference to the words of Pablo Hernández de Cos, who stated these days that it is “a good time” for analyze the competition after BBVA's offer to Sabadell.
Finally, it is noted that "the operation would also affect territorial cohesion due to the presence of these financial entities in the territory."
Taking all this into account, Economy maintains that “Spain currently has a strong and solvent financial system. Our duty is to ensure that we maintain a solid financial system, which continues to contribute to the growth of our economy and to the agenda of financial inclusion and customer protection.”
