Major Shareholder Abandons Ship Over BBVA’s Hostile Bid
A significant shareholder in Spanish bank BBVA, GQG Partners, has sold its stake due to the bank’s decision to pursue a hostile takeover of domestic rival Banco Sabadell. This move comes after GQG expressed concerns that the bid would be too time-consuming and distracting, while also diluting its exposure to emerging markets.
Concerns Over Emerging Markets Exposure
GQG had informed BBVA’s management team of its intention to sell its stake by July, citing concerns over the impact of the Sabadell bid on its investment portfolio. The shareholder believed that the acquisition would lead to a decrease in its exposure to emerging markets, which was a key factor in its decision to divest its stake.
BBVA’s Hostile Bid Hits Roadblocks
In April, BBVA presented a 12.23 billion euro ($13.29 billion) takeover bid for Sabadell, which turned hostile in May after Sabadell’s board rejected the proposal. While the European Central Bank gave the deal its green light in September, it still faces significant hurdles. The acquisition has yet to be authorized by Spain’s stock market adviser CNMV, which is currently analyzing a competition review of the bid.
Regulatory Hurdles Ahead
The deal also requires approval from Spain’s antitrust watchdog CNMC, which could lead to a prolonged review process. Under Spanish law, the government has the final say on whether a merger goes ahead, but it cannot stop a bid from being made. Both the CNMV and CNMC must authorize the deal for it to proceed.
Uncertainty Surrounds the Deal
The outcome of BBVA’s hostile bid for Sabadell remains uncertain, with multiple regulatory hurdles still to be cleared. As the situation continues to unfold, investors will be keeping a close eye on developments to see how this saga plays out.
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