BBVA Confident in Sabadell Takeover Amid Carlos Cuerpo's Concerns and Potential €1.5 Billion Cost Before Summer

BBVA has expressed confidence that its takeover bid for Sabadell will help achieve goals that would be unattainable separately. The bank is reportedly positioned to receive a favorable outcome from Spanish competition authorities, with sources indicating that the antitrust phase 2 analysis will not require divestments. However, Carlos Cuerpo, head of the Economy Ministry, has raised concerns about potential excessive market concentration resulting from the takeover. He urged caution, advising stakeholders to await the conclusions of the competition analysis. Despite these concerns, BBVA's Torres remains optimistic, anticipating that the CNMC will authorize the takeover in the coming weeks, with a resolution expected before summer. The takeover bid may become more costly, potentially requiring an additional €1.5 billion to persuade the market.