BBVA Anticipates Antitrust Approval for Sabadell Takeover, Sees Profit Potential in Turkey
BBVA is confident in securing antitrust approval for its bid to acquire Sabadell, forecasting progress in the process shortly. The all-share offer, valued at over 12 billion euros, faces scrutiny under a phase 2 review. CEO Onur Genc emphasized strategic benefits, including reduced exposure to emerging markets and anticipated profits from Turkey within the next few years.
BBVA, a prominent Spanish banking institution, is optimistic regarding its hostile takeover bid for rival Sabadell, anticipating that the relevant competition authorities will approve the bid in the upcoming weeks, as articulated by CEO Onur Genc. The all-share offer, valued at over 12 billion euros, was announced in November and has faced scrutiny, necessitating a phase 2 review mandated by the antitrust watchdog, which could potentially delay proceedings until 2025 given government opposition.
Genc expressed confidence, stating, “Our conviction is that the competition authority will give the green light to the process in the next few weeks … we’re very close to the end of that process.” BBVA has proposed an unprecedented list of remedies aimed at facilitating the completion of the merger. Additionally, Spain’s market regulator, CNMV, is waiting for governmental input before making a decision on the authorization of the takeover prospectus.
One strategic motivation behind BBVA’s pursuit of Sabadell is to mitigate its exposure to emerging markets, notably in Mexico and Turkey. Genc reported expectations of achieving a net profit of between 2.5 billion to 3 billion euros in the next two to three years, contingent upon a decline in inflation, enhancing BBVA’s financial standing despite current challenges.
In summary, BBVA’s leadership expresses strong confidence in securing antitrust approval for its Sabadell acquisition bid in the near future. The proposed remedies and strategic motivations, including reduced exposure to volatile markets, highlight the bank’s forward-thinking approach to strengthening its position within the financial sector. Overall, the anticipated profit from Turkish operations further underscores BBVA’s optimistic outlook amidst regulatory hurdles.
Original Source: www.marketscreener.com
