Spain broke EU rules by blocking BBVA-Sabadell merger
The European Commission has warned Spain that it violated EU banking and single market rules by intervening in BBVA’s hostile takeover of Banco Sabadell, escalating tensions over national interference in cross-border mergers.
The infringement notice, announced Thursday, reflects Brussels’ determination to push for more consolidation in the banking sector as part of efforts to strengthen the EU’s financial system, News.Az reports, citing Politico.
Last month, the Spanish government imposed stringent conditions on BBVA’s proposed merger with Sabadell, despite the deal having been approved by the European Central Bank (ECB) and Spain’s competition authority. The Commission argues that:
Only the ECB has the authority to block such deals under the EU’s Single Supervisory Mechanism Regulation.
Spain’s intervention creates barriers to the EU single market.
Discretionary powers granted to Spain’s economy minister under the Capital Requirements Directive were misused.
Brussels insists that banking consolidations are crucial to building a stronger EU Banking Union. “Consolidations in the banking sector benefit the EU economy as a whole,” the Commission said in its statement.
The case highlights the Commission’s tougher stance on national governments obstructing mergers for political or protectionist reasons. Similar action was taken recently against Italy for conditions imposed on UniCredit’s bid for BPM.
The move originated from the Commission’s financial services department following an anonymous complaint, not from its competition authority. While the EU’s Merger Regulation does not apply, since BBVA and Sabadell lack sufficient market size—this proactive approach could spark tensions between financial services chief Maria Luís Albuquerque and competition commissioner Teresa Ribera.
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