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BBVA and the Sánchez Government are working to approve the takeover bid for Sabadell

BBVA and the Sánchez Government are working to strengthen ties for future collaborations

Jeickson Sulbaran

June 14, 2024 | 1:00 pm

The meeting between Pedro Sánchez and the BBVA leadership marks a milestone in business relations

Within the framework of a Spain-Turkey business forum held at the BBVA corporate headquarters, the President of the Government, Pedro Sánchez, and the President of BBVA, Carlos Torres, sand met to discuss relevant economic issues. This meeting, which took place while awaiting the arrival of Turkish President Recep Tayyip Erdogan, andIt is especially significant given the context of BBVA's hostile takeover bid for Banco Sabadell.

The meeting, which lasted almost an hour, took place in an atmosphere of tension due to the position of the Spanish Government, particularly the Minister of Economy, Carlos Body, who has shown his rejection of the merger operation between BBVA and Sabadell. Despite the differences, the greeting between Sánchez and Torres marked a moment of rapprochement in a relationship that has been tense in recent weeks.

BBVA defends its merger proposal as beneficial for all involved

BBVA maintains that the merger with Banco Sabadell would result in a stronger financial group, capable of offering greater financing capacity and generating more profits. This merger, according to the entity, would benefit not only the shareholders and employees of both entities, but also to customers and society in general, by increasing the taxes paid thanks to higher profits.

BBVA and the Sánchez Government are working to strengthen ties for future collaborations

However, the Spanish government has been skeptical, mainly concerned about the implications the merger could have on competition in the banking sector. Minister Corps has insisted that the final decision on the operation rests with his department, underlining the importance of a thorough review of the proposal.

BBVA's commitment to the economy and sustainability receives praise from the Government

During the business forum, Carlos Torres took the opportunity to publicly congratulate the Government for the positive evolution of the Spanish economy. He highlighted BBVA's commitment to key issues such as sustainability, in a context where the entity is proposing to acquire 100% of Banco Sabadell.

Torres also valued positively the creation of the Productivity Council of Spain, an initiative that, according to him, will help boost long-term growth through greater private investment. Despite the existing tension over the takeover bid, the president of BBVA avoided mentioning the controversial banking tax in his speech, which could be interpreted as a conciliatory gesture.

The meeting, which also included the participation of the CEO of BBVA, Onur Genç, and the president of the Spanish Confederation of Business Organizations (CEOE), Antonio Garamendi, It was a reflection of the complexity and importance of the relationships between the Government and the large financial entities in Spain.. Erdogan's late arrival only underlined the relevance of the time shared between Sánchez and the BBVA leadership, at a crucial moment for the future of Spanish banking.

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