BBVA-Sabadell Takeover Hit With an Ugly Political Fudge
The Spanish government’s interference in the planned transaction is symptomatic of Europe’s attitude to banking consolidation.
Spain’s government told BBVA that it won’t be able to integrate Sabadell for several years if it goes ahead with its unsolicited takeover offer.
Photographer: Angel Garcia/BloombergSpain’s interference in BBVA SA’s takeover bid for Banco de Sabadell SA can be looked at in two ways. Either it’s a political bridge to help get a shaky coalition government through to its next election — or a hefty kick into some very long grass from which the proposed deal might never escape.
BBVA will need to be fairly sure it’s the former if the bank is to launch its €14 billion ($16 billion) tender for Sabadell shares. However, it might decide that after waiting nearly 16 months for clearance, more uncertainty is too much for its shareholders to bear and so walk away. That would reflect badly on Spain — and on the myopic politics around banking consolidation across Europe.