The Minister of Economy, Trade, and Business, Carlos Cuerpo, has finally decided to elevate BBVA’s public takeover bid (OPA) for Banco Sabadell to the Council of Ministers for the integration to be examined for reasons of general interest other than competition. This is a move expected by the market. Now, a period of 30 calendar days begins for the Council of Ministers to issue its opinion on the OPA.
The Council of Ministers must determine whether to keep the commitments established by the Competition Authority unchanged or to tighten the conditions to hinder the offer and subsequent merger, thus acceding to the request of Puigdemont – the fugitive whose seven deputies are the support of the Government – who intends to derail the operation.
In the order of elevation to the Government published by the Ministry of Economy, Minister Carlos Cuerpo bases the decision on reasons of general interest other than the defense of competition, “related to the potential impact of the operation on guaranteeing adequate maintenance of sectoral regulation objectives, the protection of workers, territorial cohesion, the promotion of research and technological development, and social policy objectives.”
“I have just informed the CNMC, BBVA, and Sabadell about the elevation of the decision regarding the OPA to the Council of Ministers based on reasons of general interest. This is done following both regulations and procedures of our Competition Defense Law, once the CNMC’s file regarding that authorization with conditions was received, after hearing all the ministries with economic powers, five of which requested this elevation, and also based on our internal analysis,” Cuerpo explained.
Before knowing the Executive’s move, Brussels issued a clear warning to the Government and assured that it “is studying the compatibility of the Spanish Government’s rules with those of the European Union and will not hesitate to use its powers” to open a file against Spain if this is not the case. The European Commission demands that Pedro Sánchez align himself with the competition authorities that “have already issued their opinion” and has warned that it will be vigilant.
