3 days ago
BBVA analysing impact of government conditions on synergies in Sabadell bid
SANTANDER, Spain, June 25 (Reuters) - Spain's BBVA ( opens new tab is considering whether to go ahead with its bid for Sabadell ( opens new tab after conditions imposed by the Spanish government on the deal and will reassess the impact on its estimated cost savings, the bank's country manager for Spain said on Wednesday.
Peio Belausteguigoitia's comments come after the government said on Tuesday that BBVA will not be allowed to integrate its operations with Sabadell for at least three years as one of the conditions imposed by the Spanish government on its hostile bid for its smaller rival.
"We'll decide on the additional condition shortly, in the near future ... We're in no way keen to delay this process," the BBVA executive said.
He added that "all options" remained on the table - including withdrawing the offer and a potential claim against the government's verdict - while also defending the deal's rationale.
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.
So far, BBVA had signalled that if it kept Sabadell separate it would still be able to generate the majority of the expected 850 million euros ($986 million) in cost synergies over two years after completing the deal.
($1 = 0.8621 euros)
