The Government has granted approval for BBVA’s acquisition of Banco Sabadell with specific conditions that aim to protect workers, businesses, and financial clients. Economy Minister Carlos Cuerpo announced that both banks must maintain their legal identities and assets separate for three years, while operating autonomously. Cuerpo described these conditions as proportional and balanced, asserting they allow the acquisition process to proceed without hindrance.

This long-awaited decision culminates over thirteen months of negotiations and regulatory authorisations. Now, the outcome hinges on the actions of BBVA’s management under Carlos Torres Vila and Sabadell’s shareholders. Following the acquisition’s approval, the Government will assess its effectiveness after three years, with the prospect of extending the autonomy requirement for an additional two years.

Both banks are currently reviewing the implications of this agreement on their operations and stakeholder interests. Sabadell has requested information from BBVA regarding the terms’ impact on expected synergies and shareholder returns, emphasising the importance of this information for their investors. Meanwhile, Cuerpo highlighted that the measures aim to bolster business growth, support employment, and enhance social contributions through their foundations.

On the stock market front, both banks experienced a positive reaction post-announcement, with BBVA shares gaining over two point four percent shortly after trading resumed. Catalonia’s President Salvador Illa praised the decision, underlining the need to protect a banking system rooted in local communities that meets the requirements of families and businesses, advocating a balanced approach to banking.