Spanish Regulator Approves BBVA Sabadell €14.9B Takeover Bid

Spain's securities market regulator, CNMV, has approved BBVA's €14.9 billion hostile takeover bid for Banco Sabadell, aiming to create Spain's second-largest bank after Caixabank. The U.S. Securities and Exchange Commission has also authorized BBVA to lower the acceptance threshold of the bid from 50% to 30% of voting rights, with the condition that BBVA must launch a mandatory cash offer for the remaining shares within a month if it only secures between 30% and 50%. The deal, which faced opposition from Sabadell's board and some regional governments, has received regulatory approval from Spain's competition authority and the European Central Bank, although a full merger is restricted for at least three years. BBVA's plan to waive the higher stake requirement and proceed with the takeover despite controversy shows its strategic intent to consolidate Spain's banking sector. The acceptance period for the takeover is expected to start soon, pending documentation publication by BBVA. This acquisition marks a significant move in the eurozone banking landscape, positioning BBVA as a dominant player with nearly €1 trillion in assets.