BBVA Secures Approval for Sabadell's Mexican Business Acquisition

By Jesús Aguado

MADRID (Reuters) – BBVA announced on Monday that Mexico's competition authority has approved its plan to take indirect control of Sabadell's Mexican businesses.

BBVA (BME:BBVA) previously received clearance from the European Central Bank and other authorities across multiple countries where Sabadell operates, including Britain, the United States, France, Portugal, and Morocco.

The second-largest bank in Spain earns about half of its overall profit in Mexico. According to the competition authority, the deal "would have a low probability of impacting the competition process and free economic activity."

The merger would create a bank with over 1 trillion euros ($1.04 trillion) in total assets, representing the latest consolidation in Spain's banking sector.

BBVA is making concessions after Spain's competition watchdog indicated that the initial offer of 12.28 billion euros ($13 billion) for Sabadell must undergo a more extended review process.

Since announcing its offer on April 29, BBVA's shares have dropped about 15%, now valuing the bank at around 10.25 billion euros.

The acquisition, opposed by the Spanish government, also requires approval from Spain's stock market supervisor.

Sabadell rejected the all-share offer in May, leading BBVA to attempt a hostile takeover in a second bid, following a failed attempt in 2020.

($1 = 0.9615 euros)