Inici » Hostile Takeovers: Implications and Reactions in the Catalan Banking Sector

Hostile Takeovers: Implications and Reactions in the Catalan Banking Sector

by PREMIUM.CAT

A Hostile Movement in the Banking Landscape

The recent hostile takeover launched by BBVA against Banc Sabadell has generated a whirlwind of reactions in the Catalan banking sector. While some have applauded the initiative, others have expressed concerns about its potential consequences.

Favorable Reactions: Concentration and Strengthening

Analysts have argued that the takeover bid is a logical consequence of the European Central Bank’s strategy, which promotes the concentration and strengthening of banking entities. They have also defended that any business action that benefits the interests of companies is positive, such as the decision of large companies to move their headquarters outside of Catalonia in response to the independence process.

Critical Reactions: Bank Concentration and Oligopoly

Those who oppose the operation warn about the danger of banking concentration and the formation of an oligopoly that would harm small and medium-sized Catalan companies, reducing their ability to choose entities and credit offers. The high concentration of offices in the hands of BBVA and CaixaBank in Catalonia supports this concern.

Organizations such as Foment del Treball Nacional and PIMEC have been among the first to oppose BBVA’s intention, as have the Generalitat and the Spanish government, who have put forward the same arguments.

Labor and Union Concerns

Banking unions have also expressed concern about the possible reduction of offices and employees in the entity resulting from the absorption. The estimated reduction percentages are around 30%.

An Arduous and Tortuous Road

The path that BBVA’s takeover bid must take will be long and complicated, with possible appeals and resources before the National Markets and Competition Commission or the National Securities Market Commission.

In Spain, these types of operations are rare, and some have recalled the failed takeover bid launched by BBV (without the A for Argentaria) against Banesto.

The Question of Catalan Financial Interests

Surprisingly, almost no one has objected to BBVA’s takeover bid, arguing the consequences that the takeover would have for the financial interests of Catalonia. There is a reluctance to use the arguments usually used by States to promote or frustrate large business or financial operations.

The Spanish government has opposed Saudi Telecom’s acquisition of Telefónica shares, citing national interest. If States can appeal to strategic or national values, why can’t Catalan social, political or institutional agents do so?

The disappearance of Banc Sabadell would weaken the Catalan banking system, beyond harming depositors or small and medium-sized companies due to competition rules. Neither the European Union nor the Spanish government will comment on the matter, the latter possibly due to the imminence of elections in which the PSC cannot accept a similar maneuver.

The Impact of the 2008 Banking Crisis

The Catalan financial system suffered a severe blow during the 2008 banking crisis, with the disappearance of most savings banks. BBVA was the main beneficiary, absorbing several Catalan entities.

In addition to the negative effects for depositors, the disappearance of the savings banks meant the loss of an important social and cultural project that had a great impact on the Catalan associative fabric.

The Loss of Identity of Banc Sabadell

Banc Sabadell has lost sight of its Catalan roots and aspires to be an entity integrated into the Spanish financial system. He has prepared this merger for months, ceding control of the bank to executives with interests and sensitivities outside Catalonia.

The merger with BBVA will not make a big difference for clients, since Banc Sabadell has abandoned its Catalan identity and has opted for regional dissolution.

The opposition of Josep Oliu and the board of directors to the merger may only be due to the final share price offered by BBVA. However, the feeling of loss of identity and dependence is undeniable.

You may also like

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00