The CEO of BBVA, Onur Genç, reacted this morning to the decision of the (CNMC) to elevate it to a second phase. Genç has stated that they hope to obtain approval in “a few months” that does not affect the value creation of the operation. Otherwise, they can back out.
“If this is not the case, if the creation of value does not exist, we have the option of withdrawing the takeover bid. We will not hesitate for a second to back out if the creation of value does not exist,” he stated. Genç has repeated the idea that he already mentioned in the third quarter of the year, when he first mentioned the possibility of the bank withdrawing the offer.
The CNMC’s decision, known this Tuesday, represents the first setback for BBVA in its plans to take over the Catalan bank, after having obtained the yes from the European Central Bank (ECB) and its shareholders meeting. The Basque entity expected, as happened in 2021 with the merger between CaixaBank and Bankia, that the CNMC would approve the operation in the first phase, accepting the conditions they have proposed, which are in line with those of CaixaBank at the time.
When moving to the second phase, this will extend the deadlines. BBVA expected to obtain all regulatory authorizations six months after launching the takeover bid, a deadline that expired on Saturday. Now it must face a longer process, which could last until spring 2025.
“We hope that the transaction will be approved in a few months and continue with the process,” said the CEO of the bank of Basque origin, although he has clarified that they hope that the CNMC authorization will be settled with conditions that do not affect the creation of value of the operation.
For the rest, Genç has once again defended the creation of value from the transaction for both the shareholders of BBVA, those of Sabadell and for “society in general.” He has repeated the entity’s basic argument to justify the transaction, the need to have larger banks, with greater scale to face the high investments in technology that the sector must face in its digitalization process. “We completely believe in creating value. The economic rationale is undeniable. The numbers make sense,” he assured.
The government’s reaction
This morning the Government expressed its doubts about the offer, although it will not make decisions until it knows the final opinion of the CNMC. The Minister of Economy, Commerce and Business, Carlos Body, has stated in statements to RNE, reported by Europa Press, that he appreciates worrying elements “from the beginning”, among them the impact of excess concentration, both for the clients themselves. financial, such as in matters of financial inclusion; the impact on employment and territorial cohesion; and the impact on the credit or financing of SMEs.”
“This joint assessment or evaluation of all these effects is unique on the part of the Government, because each of the institutions has to look at their powers. And this is the area in which we look at this operation and we will do so until the end,” stressed the minister, who stressed that competition is one of the issues that most concerns the Council of Ministers. “Let’s wait to see what the final result of the assessment is. It is true that what this does is delay the process a little.”
The CNMC’s decision to move the analysis to phase two also gives greater prominence to the Government. It means that the conditions imposed by Competition must be endorsed by the Ministry of Economy, which will in turn propose to the Council of Ministers whether to toughen or soften these conditions.
