BBVA is confident its takeover bid for Sabadell will gain antitrust approval soon. The review process, which may extend into 2025, includes remedies submitted to address concerns. Furthermore, BBVA aims to lessen its exposure to markets like Turkey, targeting significant net profits over the next few years.
BBVA’s CEO, Onur Genc, expressed confidence that the antitrust authorities will soon approve its hostile takeover bid for Sabadell. The takeover, which is valued over 12 billion euros ($12.64 billion) as of April, underwent an extended phase 2 review by the antitrust watchdog, potentially delaying approval until 2025. Genc emphasized that BBVA is close to ending this review process, having presented an unprecedented list of remedies to facilitate the deal.
Spain’s market supervisor, CNMV, is also involved in the approval process and has stated it will wait for government input before authorizing the takeover prospectus. BBVA aims to acquire Sabadell to mitigate its exposure to emerging markets like Mexico and Turkey. Genc anticipates that if inflation decreases, BBVA could generate a net profit of 2.5 to 3 billion euros ($2.73 billion) from these markets over the next two to three years.
BBVA is optimistic about receiving antitrust approval for its Sabadell acquisition, underscoring a strategy to reduce risk in emerging markets. With remedies submitted to authorities and the expectation of profitability in Turkey, the bank is prepared for potential challenges in the approval phase. The next few weeks are crucial for BBVA’s plans as it awaits endorsements from both the CNMV and the government.
Original Source: www.marketscreener.com
