Spain's Economy Minister Defends BBVA-Sabadell Takeover Process Amid EU Scrutiny

Spain's Minister of Economy, Carlos Cuerpo, has defended the government's role in the failed BBVA hostile takeover bid for Banco Sabadell, emphasizing that Spanish regulations did not obstruct the process and that the final decision rested with shareholders. Speaking during the IMF and World Bank annual assembly in Washington, Cuerpo highlighted that only 25% of Sabadell shareholders supported the bid, below the required acceptance threshold, which led to its failure. He stated the government introduced a precedent-setting evaluation process including public consultation to ensure protection of public interests without unduly hindering private sector value creation.

Cuerpo clarified that the government did not intervene but participated to safeguard the general interest and maintained that the operation adhered to both Spanish and European legal frameworks. The government imposed conditions limiting synergies between BBVA and Sabadell by ensuring both banks remain independent for three years, which reduced potential merger savings. Despite criticism, Cuerpo pointed out Spain is working alongside the European Commission, which has launched an inquiry to assess possible violations of EU competition laws relating to this case.

Further affirming Spain's economic outlook, Cuerpo noted the IMF forecast of 2.9% growth for 2025, marking Spain as the fastest-growing advanced economy, with a banking sector that has gained 80% in its stock index this year. Additionally, Spain has increased its global financial commitments, reinforcing multilateralism via a €150 million contribution to the World Bank aimed at debt reduction and sustainable development in developing countries.