BBVA is optimistic about receiving antitrust approval for its bid to acquire Sabadell, despite prolonged regulatory reviews. CEO Onur Genc anticipates a resolution soon and aims to reduce exposure to emerging markets like Turkey and Mexico by acquiring Sabadell, expecting significant profits in the coming years.

BBVA’s Chief Executive Officer, Onur Genc, expressed confidence regarding the anticipated approval of the bank’s takeover bid for Sabadell by competition authorities in the near term. The all-share offer, valued at over 12 billion euros, was subjected to a phase 2 review by the antitrust regulator due to government opposition. Despite the potential extension of the review process into 2025, Genc emphasized optimism for a resolution soon, citing a comprehensive list of proposed remedies submitted by BBVA to facilitate the merger.

Furthermore, BBVA is navigating the approval process with Spain’s CNMV, which has indicated that its decision regarding the takeover prospectus is contingent upon government guidance. Genc highlighted strategic motivations for acquiring Sabadell, particularly aimed at decreasing BBVA’s reliance on markets such as Mexico and Turkey. He noted that the bank anticipates achieving a net profit between 2.5 billion to 3 billion euros over the next two to three years, assuming a continued decline in inflation.

In summary, BBVA remains optimistic about the approval of its takeover bid for Sabadell, with expectations for a resolution in the coming weeks despite regulatory hurdles. The merger is positioned as a strategic move to mitigate exposure to volatile markets while bolstering profitability in the foreseeable future.

Original Source: www.marketscreener.com