Overview

• BBVA's year-long hostile takeover bid for Banco Sabadell has reached a critical phase, with the Spanish government set to decide on additional conditions or escalation to the Council of Ministers.
• The CNMC approved the merger in late April 2025 with temporary conditions, but the final decision rests with the government due to the political and systemic implications of the deal.
• Catalan leaders, including President Salvador Illa, along with unions and business groups, oppose the merger, citing concerns over regional identity and SME financing in Catalonia.
• The government initiated an unusual public consultation to gather feedback, reflecting the high stakes and public interest surrounding the merger in Spain’s strategic banking sector.
• If approved, the merger would further consolidate Spain's banking market, reducing the number of dominant players in Catalonia from four to three, raising broader concerns about market concentration.