Sabadell bank appeals to Spanish government's 'responsibility' amid BBVA hostile takeover bid

On the night before Banc Sabadell's first AGM in Sabadell since returning their headquarters to Catalonia, the bank organized a press dinner at the Círculo Ecuestre on Wednesday.

Leaders of the financial entity admitted "credibility" in the information that Spain's stock market regulators (CNMC) would make some recommendations to guarantee competition that they would find "insufficient." 

Banc Sabadell made an appeal to the “responsibility” of the Spanish government to “safeguard the common good” and protect the business community in the face of the BBVA takeover bid.

If the operation enters phase 3, as is expected, the bank’s president, Josep Oliu, insists that Pedro Sánchez’s executive has the task of protecting “the balance” in the financing of the Spanish market.

It is believed that the CNMC's recommendations will center around elements of conduct when, in the bank's opinion, structural steps such as the sale of part of the joint business would be necessary.

The bank’s CEO, César González-Bueno said “it would be a pity" prior to the AGM.

According to Oliu, the Spanish executive has steps it can take to ensure healthy competition, such as arguing in favor of economic growth, the situation in which SMEs would be left, or territorial balance.

In any case, the president of Banc Sabadell does not believe that BBVA will desist from carrying out the hostile takeover, depending on the conditions the Spanish government could eventually apply.

Banc Sabadell returned its headquarters to Catalonia in January, after leaving in 2017 amid the independence push.