Spain's CNMC clears BBVA's takeover bid for Sabadell amid government opposition
- Spain's CNMC approved BBVA's takeover of Banco Sabadell, despite government opposition.
- The deal is valued at approximately 12 billion euros, aimed at creating the second-largest bank in Spain.
- If finalized, the acquisition could reshape the competitive landscape of the Spanish banking market.
On May 1, 2025, Spain’s competition regulatory body, CNMC, approved the acquisition of Banco Sabadell by the larger rival BBVA, amidst significant scrutiny and opposition from the Spanish government. The deal, which is valued around 12 billion euros, marks a pivotal moment in the Spanish banking sector as BBVA aims to emerge as the second-largest lender in Spain by credit volume after Caixabank. The CNMC determined that BBVA's proposed remedies to address competition concerns in the retail banking sector were appropriate. Despite this approval from CNMC, the acquisition still faces hurdles, such as gaining approval from the stock market supervisor, CNMV, and navigating the government’s evaluation process. BBVA has committed to maintain services in underserved areas and to uphold certain financial agreements for small and medium enterprises for a specified duration, addressing some competition issues raised in the review. However, the initiative has met with backlash from the Spanish government, which opposes the merger due to concerns over potential market consolidation and the impact on local banking competition. Ultimately, while the approval of the CNMC is a significant step for BBVA’s planned acquisition, the merger’s future hinges on government review and potential state intervention due to legal frameworks in place that govern such substantial banking mergers.