BBVA Receives Approval for Banco Sabadell Acquisition in Morocco

BBVA's CEO, Onur Genc, expressed optimism regarding the approval of its hostile takeover bid for rival Banco Sabadell, anticipating a decision from competition authorities in the coming weeks. The bid, valued at over €12 billion, is currently undergoing a phase 2 review by Spain's antitrust regulator, a process that has been complicated by government opposition. Genc noted that BBVA has submitted a comprehensive list of remedies to address potential regulatory concerns, aiming to facilitate the acquisition. In contrast, Sabadell's CEO indicated that the regulatory outlook might not be overly harsh, although he expressed doubts about the deal's viability due to political and economic complexities. The acquisition is seen as a strategic move for BBVA to reduce its reliance on volatile markets, such as Mexico and Turkey, with expected profits of €2.5 billion to €3 billion in the next few years. The outcome of this bid could significantly reshape the Spanish banking landscape, potentially leading to more mergers in the sector.