Alex Trelinski
PRIME Minister Pedro Sanchez says there will be a public consultation over the hostile takeover of Banco Sabadell by the BBVA bank.
Sanchez announced the news in Barcelona on Monday during a speech to Catalan business leaders.
Sabadell has its roots in the Catalunya region though it moved its HQ to Alicante in the wake of the illegal independence referendum in 2017.
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It announced in January that its base would return to Barcelona.
Spain’s monopolies and competition body, the CNMC, approved the BBVA-Sabadell merger last week, with some provisos.
It would become the country’s second-largest bank but hurdles still remain- namely getting government approval.
Pedro Sanchez said: “The Spanish government will start a consultation tomorrow to gather the opinion of citizens’ organisations and associations.”
“Our intention is to help our companies grow, to gain volume and competitiveness, as long as it benefits the general interest,” he added.
The takeover is said to be worth around €12 billion but is opposed by the government, who via the Council of Ministers has the power to stop it happening.
When the CNMC announcement was made last week, deputy Prime Minister and Labour Minister, Yolanda Diaz, made her position clear.
She warned about 5,000 job losses and described the takeover as a ‘major mistake’ which would have a negative impact on Catalunya.
Pedro Sanchez said that ‘social cohesion and territorial cohesion’ should be taken into account in any merger.
Josep Sanchez Llibre, the head of Barcelona’s ‘Foment del Treball’ business centre appealed to the government to block the takeover.
He claimed it could cost Spanish industry €70 billion as a new merged entity would reduce the amount of loans available.
