Banco Sabadell Rejected by Government over Potential Concentration Effects on Spanish Financial System”

Government Disapproves BBVA’s Hostile Takeover Bid for Sabadell in All Aspects

The Government has rejected BBVA’s proposed hostile takeover bid of Banco Sabadell, stating that they do not support the decision in both form and substance. According to sources from the Ministry of Economy, the operation could have detrimental effects on the Spanish financial system, such as increased concentration that could negatively impact employment and financial services provision. Furthermore, the government believes that the merger could introduce additional risks to financial stability and affect territorial cohesion due to the presence of these financial entities in the territory.

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