BBVA is optimistic about securing antitrust approval for its takeover bid for Sabadell, valued over 12 billion euros. CEO Onur Genc anticipates a decision within weeks, following the bank’s unprecedented remedy submissions. The deal aims to reduce BBVA’s exposure to emerging markets, with positive profit expectations from Turkey in the coming years.
BBVA, a leading Spanish bank, expressed confidence in receiving antitrust approval for its takeover bid of Sabadell within weeks, according to Chief Executive Officer Onur Genc. The hostile bid, valued at over 12 billion euros, requires a thorough phase 2 review by competition authorities, which has faced opposition from the government, potentially extending the review process into 2025.
Genc emphasized the lender’s belief that the competition authority will soon grant approval, noting that BBVA had presented an unprecedented list of remedies to facilitate the acquisition. Concurrently, Spain’s market supervisor, CNMV, will await governmental guidance before making a decision on the takeover’s authorisation.
The strategic acquisition of Sabadell aims to diminish BBVA’s reliance on emerging markets, particularly Mexico and Turkey. Genc indicated optimistic projections for Turkey, where BBVA anticipates achieving a net profit of 2.5 billion to 3 billion euros over the next two to three years, contingent on a decline in inflation rates.
BBVA’s confidence in obtaining antitrust approval for its Sabadell takeover is bolstered by the submission of significant remedies to address competition concerns. This acquisition is seen as a strategic move to lessen BBVA’s exposure to volatile emerging markets, alongside optimistic profit expectations from Turkey. Despite governmental opposition and the ongoing review, BBVA remains hopeful for a timely resolution.
Original Source: www.marketscreener.com
