Spain says BBVA must keep Sabadell separate for three years as takeover condition
By Jesús Aguado
MADRID (Reuters) -Spain's BBVA will have to keep banks as separate entities for at least three years and protect jobs as part of conditions imposed by the government on the hostile takeover bid for Sabadell, in a potential blow to BBVA's plans.
These conditions are different from the competition criteria used by Spain's antitrust watchdog applied when it cleared the deal, currently valued at about 14 billion euros ($16.23 billion) and subject to several remedies.
"The government has authorised the BBVA and Sabadell deal on the condition that, for the next three years, they remain separate legal entities and maintain separate assets, as well as preserve autonomy in the management of their activities," Economy Minister Carlos Cuerpo told a news conference.
He said that the new entity will be entitled to request the merger once the condition set on Tuesday has been met.
Under Spanish law, the government cannot stop BBVA from buying its target's shares, but it has the final word at a later stage on whether a merger goes ahead.
BBVA Chairman Carlos Torres said on Monday that the lender could withdraw its offer for Sabadell if the conditions imposed were too harsh or if it were forced to accept the sale of Sabadell's British unit TSB.
BBVA had no immediate comment on the conditions.
The competition review was not final until the government's approval.
Cuerpo said that the conditions involved effective autonomous decision-making in financing for small- and medium-sized businesses, decisions relating to staff, network of branches and banking services, and activities of Sabadell's foundations.
Madrid had so far opposed the transaction because of the risk it could lead to job losses.
($1 = 0.8624 euros)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
8 hours ago
- Business Insider
UK terminates $34B subsea cable energy agreement in North Africa
The UK government has officially withdrawn its support for the £25 billion ($34.4 billion) Morocco-UK Power Project, a pioneering plan to harness solar and wind energy from the Sahara Desert and transmit it to Britain via the world's longest subsea power cable. The UK government has withdrawn support for the £25 billion Morocco-UK Power Project due to national interest concerns. This project aimed to transmit renewable energy from Morocco to the UK via a 3,800 km subsea power cable. The lack of government-backed contracts reduced investment attractiveness, leading to project termination. The ambitious project, led by British clean energy company, Xlinks, involved laying over 3,800 kilometers of high-voltage subsea cables from Morocco's Guelmim-Oued Noun region to Devon in southwest England, to generate enough electricity to power over 7 million UK homes, accounting for up to 8% of the country's energy needs. Prior to its termination, the inter-continental energy project, which would have harnessed over 10.5 gigawatts of solar and wind power to deliver a steady 3.6 gigawatts of baseload energy, had reportedly cleared environmental permits and was scheduled for construction as early as 2027. Reuters report that over £100 million ($137 million) has already been spent on development and feasibility studies, with significant interest from lenders to fund the construction phase. However, the lack of a government-backed contract for difference and a guaranteed minimum price for electricity made the project riskier and less attractive to investors. Michael Shanks, UK Energy Minister highlighted the reasons for the decision; he said the government had concluded that, 'it is not in the UK national interest at this time to continue further consideration of support for the Morocco-UK Power Project. ' He also cited concerns over economic alignment and a shift toward ' homegrown power ' as part of a broader energy security strategy, adding that the government had concluded that it preferred domestic renewable investments with greater economic and energy security benefits. Reacting to the news of cancellation, Xlinks, Chairman, Dave Lewis said, 'We are hugely surprised and bitterly disappointed that the UK government would choose to walk away from an opportunity to unlock the substantial value that a large-scale renewable energy project like this would bring,' 'We are now working to unlock the potential of the project and maximize its value for all parties in a different way.' He added. The Morocco-UK Power Project At its core, the Morocco-UK Power Project was envisioned as a transcontinental clean energy solution; designed to tap into North Africa 's abundant sunshine and wind to help the UK meet its 2030 net-zero grid ambitions while easing reliance on natural gas. It would have featured 11.5 gigawatts of solar and wind capacity with battery storage to deliver 3.6 gigawatts of steady baseload power. Despite backing from major investors like TAQA, TotalEnergies, Octopus Energy, and GE Vernova, concerns over the project's complexity, transmission length, geopolitical risks, and dependency on a non-European partner ultimately led to the UK's decision to pull back. As global clean energy investment is projected to reach $3.3 trillion in 2025, with two-thirds going towards renewables and storage, the UK's move signals a shift towards resilient, domestic systems over cross-border mega-deals.
Yahoo
9 hours ago
- Yahoo
BBVA Partners with Olea to Broaden Global Supply Chain Finance Access
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is one of the 11 best European stocks to invest in. On June 24, BBVA announced a strategic collaboration with digital trade finance platform Olea to expand its supply chain finance (SCF) offerings worldwide. The collaboration targets emerging markets and Asia, aiming to streamline cross-border transactions with real-time data, risk analysis, and faster execution. A business professional banking from their laptop, taking advantage of the company's investment services. With Olea's reach across 70+ trade corridors, the partnership addresses financing challenges for mid-sized suppliers and supports scalable, inclusive SCF solutions. BBVA plans to integrate future innovations like AI-driven credit scoring and sustainable finance models, further enhancing its role in next-gen global trade. Banco Bilbao Vizcaya Argentaria SA (BBVA) offers retail, private, wholesale banking, and asset management services across six regions: Spain, the U.S., Mexico, Turkey, South America, and the rest of Eurasia. Its operations span banking and insurance activities, with regional subsidiaries and branches supporting localized financial services throughout Europe, the Americas, and Asia. While we acknowledge the potential of BBVA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Yahoo
BBVA introduces digital bank in Germany
BBVA has launched its fully digital bank in Germany, marking its second such offering in Europe. The Spanish banking group had earlier operated in Germany through its Corporate & Investment Banking (CIB) arm. The introduction of its digital bank in the country follows a launch in Italy at the end of 2021. The German proposition offers a checking account with a 3% interest rate for the first year as well as a debit card with 3% cashback on purchases, both free of fees. BBVA's digital banking services in Germany include free access to approximately 70,000 ATMs and cash withdrawal points throughout the country, with no charge for withdrawals exceeding €150. It supports instant SEPA transfers, direct debits, and a digital service for switching accounts, all free of cost. The digital bank provides 'flexible' financing options, such as the Pay&Plan programme, one-click personal loans and the Dispokredit overdraft facility. BBVA CEO Onur Genç said: 'We're bringing something new to Germany. A banking experience that combines the simplicity and convenience of a fee-free account, typical of digital actors, with the full range of products, reliability, and trust of a universal bank.' 'We believe German customers are ready for a fresh alternative that's mobile-first, transparent, and backed by the strength and reputation of a global bank like BBVA.' BBVA Germany operates under a full banking licence, providing German IBAN accounts that are protected under the European Deposit Protection scheme up to €100,000. The bank said its digital app has been designed to offer features like card management, 'secure' payments, 'real-time' updates, and budgeting tools. BBVA Germany has also introduced payment cards without printed data, featuring a dynamic CVV. Recently, the bank's Sabadell acquisition faced a delay as the Spanish government imposed a mandatory three-year waiting period before the two entities can integrate their operations. "BBVA introduces digital bank in Germany" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
