MADRID: Spanish lender Abanca is not interested in a merger with Sabadell, it said on Monday, dismissing a report in newspaper Expansion it was considering such a deal in response to a hostile takeover bid from BBVA.
The newspaper cited unidentified sources as saying Sabadell had held preliminary talks with shareholders in Abanca, which is majority-owned by businessman Juan Carlos Escotet.
“Abanca wishes to reiterate that it has no interest in this transaction,” the lender said in a statement, adding it would not comment further on market speculation.
Sabadell declined to comment on the Expansion report.
Spain’s competition watchdog, the CNMC, has approved BBVA’s takeover bid provided it makes concessions.
The Spanish government, however, opposes the deal because of fears it could lead to job losses. It launched a non-binding public consultation on the matter last week.
Spanish legislation requires the governing bodies of a company targeted in a takeover bid to remain passive and request shareholder approval before taking any action that might prevent an acquisition from succeeding.
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On Sunday, newspaper La Vanguardia reported the government told Sabadell Chairman Josep Oliu that having a core shareholder group would make it easier to fend off approaches from third parties.
A spokesperson for the Spanish economy ministry said it had no information.
Should any transaction materialise, it said the government would assess it according to public interest criteria.
The government was focused on assessing whether additional measures on the proposed BBVA-Sabadell deal were needed, the spokesperson added.
Under Spanish law, the government cannot stop a bid from being made, but it has the final word on whether a merger goes ahead. The economy ministry has until May 27 to take the deal to a cabinet meeting after the CNMC’s authorisation.
The government then has a month to make a final decision on whether to approve the deal with or without conditions.
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