GQG Partners Sells Stake in BBVA

(Reuters) – GQG Partners, one of Spanish bank BBVA's biggest shareholders, has sold its stake following the bank's decision to pursue a hostile bid for rival Banco Sabadell, as reported by the Financial Times on Sunday.

GQG decided to divest by July, informing BBVA's management that it viewed the Sabadell bid as overly time-consuming and distracting, while also diluting its exposure to emerging markets.

Neither GQG, BBVA, nor Sabadell immediately responded to requests for comment from Reuters.

BBVA's Hostile Takeover Attempt

BBVA presented a €12.23 billion ($13.29 billion) takeover bid for Banco Sabadell in April, which became hostile in May when it was taken directly to Sabadell's shareholders after the board rejected the proposal.

While the Spanish government opposes the deal, the European Central Bank approved it in September. However, the acquisition still awaits authorization from Spain's stock market adviser CNMV, which indicated it would analyze a competition review of the bid before approving it.

Moreover, the deal has not yet been authorized by Spain's antitrust watchdog CNMC, with a potential review extending into early 2025 if more in-depth analysis is needed.

Under Spanish law, the government cannot prevent a bid but has the final say on mergers. Both CNMV and CNMC must approve the deal for it to proceed.

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