The European Commission keeps the file open against the Government for its interference in the OPA
The spokesperson for the European Commission, Olof Gill, stated this Friday that the infringement procedure against Spain for the Government’s actions in BBVA’s takeover bid for Banco Sabadell, after this operation had failed.
At a press conference in Brussels this Friday, the spokesperson did not want to comment on the specific case, but he did clarify that the procedure is moving forward because it is maintained that there are postulates of Spanish law that go against European law and invades exclusive powers of the European Central Bank (ECB), of national supervisors, infringes European banking regulation and the freedom of movement of capital.
Furthermore, he has defended banking consolidation, both domestic and cross-border, considering that helps improve the efficiency of the sectorprofitability, benefits the European economy and all consumers.
The infringement procedure was communicated on July 17 and contemplated a period of two months to respond and correct. The Government requested a six-week extension of the deadline from the European Commission, which was granted.
The procedure was opened by breach European legislation by granting in national regulations “unlimited powers” to the Government to intervene in bank mergers that conflict with European laws, following its decision to prohibit BBVA’s takeover bid for Banco Sabadell for at least three years.
Body defends the role of the Government
For his part, the Minister of Economy, Carlos Body, has assured that he does not believe that the conditions imposed by the Government to BBVA’s takeover bid for Banco Sabadell have led to the failure of the operation and has advanced that his department will explain to the European Commission (EC) that the procedure followed is “fully compatible” with European legislation.
“We are in contact with the EC to give them all the necessary arguments to continue conveying not only that the Government’s actions are part of our regulations, but that our regulations are fully compatible with European legislation,” Corpo explained in a press conference held in Washington at the end of the annual meetings of the International Monetary Fund (IMF) and the World Bank, in which he participated.
In Corp’s opinion, “this takeover bid has a positive result due to the precedent it has set with respect to the capacity of this type of operations to generate value for shareholders, for the private sector in this case, and to be able to do so while protecting general interests.
The head of Economy has said that, after knowing the result of the takeover bid, “we must respect the will of the shareholders and the market.” Body has pointed out that The operation has been “particularly complex” and longer in time “than usual.”
The minister has highlighted the good performance of all regulators involved in the takeover bid, from the Bank of Spain, the National Markets and Competition Commission (CNMC) and the National Securities Market Commission (CNMV)
“The message is maximum respect for the decision of the shareholderswho were the ones who had to make the decision,” reiterated Body, who highlighted the competitiveness of the Spanish banking sector, “one of the most solvent” at the European level, and its good performance on the stock market.
