BBVA said in a statement released by the stock market regulator that the it had “received the decision of non-opposition from the European Central Bank to BBVA’s taking control of Banco Sabadell, as a result of the offer.”
BBVA announced the hostile bid in May, which immediately ran into opposition from Spain’s leftist government on worries about job losses and increased concentration in the banking sector.
A takeover would create a banking powerhouse capable of competing with Santander — Spain’s leading bank — as well as with European giants such as HSBC and BNP Paribas.
READ MORE: How would the BBVA takeover of Sabadell affect customers in Spain?
Sabadell, Spain’s fourth-largest banking group in terms of capitalisation, rejected a friendly offer from BBVA, saying it “significantly undervalues” the bank.
BBVA’s hostile public offer was announced under the same conditions as the initial approach — an exchange of one new BBVA share for every 4.83 Sabadell shares.
BBVA recently approved a capital increase, another key element for the tender for Sabadell shares to go forward.
The ECB’s green light was also a key requirement for the public share offer to go forward.
It will also need the approval of Spain’s stock market regulator, the CNMV, as well as competition authorities in the countries in which the banks operate.
The regulatory hurdles could take several months to clear.
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