Carlos Torres Vila: “The union with Sabadell is positive for Catalonia, Spain, and Europe”
BBVA Chair Carlos Torres Vila explained why the union with Banco Sabadell will have a positive impact on the public interest and is beneficial for the customers of both banks, their shareholders and employees, and society as a whole. “It's a positive move for Catalonia, Spain, and Europe,” he said last week in a series of interviews with Cadena COPE, RAC1 and El Periódico. Torres Vila emphasized that Banco Sabadell customers will have access to a network of more than twice as many branches and almost three times as many ATMs, a wider range of products, greater ease for international expansion for companies, and a bank with greater lending capacity (up to an additional €5 billion per year). It is also a good deal for employees, who will have more opportunities, and for shareholders, who will benefit from a transaction that will lead to higher earnings per share and greater stability given BBVA's geographical diversification.
The BBVA Chair pointed out in these interviews that the deal has been approved by 27 regulatory bodies. The most important of these are the European Central Bank (ECB) and the Spanish National Markets and Competition Commission (CNMC), which unanimously authorized the transaction a few weeks ago. Under the terms of the CNMC approval, BBVA has committed to remedies which Carlos Torres Vila described as “very powerful.” He added, “The deal was already excellent. With the remedies, it’s even better.”
Under the terms of the approval from Spain’s competition supervisor, the CNMC, BBVA has committed to comply with remedies that are unprecedented in the Spanish financial sector, aimed at promoting financial inclusion, territorial cohesion, and access to credit for SMEs and the self-employed, while safeguarding competition, particularly in regions where BBVA and Sabadell hold a strong presence, such as Catalonia. Among these remedies, BBVA has pledged not to close branches where no other branch exists within 300 meters, in postal codes with a per capita income below €10,000, in areas with fewer than three competitors, or in municipalities with fewer than 5,000 inhabitants.
"In Catalonia, we guarantee full credit to the vast majority of SME clients of both entities over the next five years"
Additionally, the bank has committed to maintaining commercial terms for SMEs and the self-employed in specific areas, and to guaranteeing the volume of outstanding credit to all SMEs and self-employed clients of Banco Sabadell for a period of three years, extendable to five. BBVA has also committed to maintaining the total volume of credit for SMEs in regions where the combined market share of BBVA and Banco Sabadell is at least 85 percent. In autonomous communities where the combined entity holds a higher share of the SME lending market, such as Catalonia and the Balearic Islands, this remedy applies to SMEs where the aggregate share is at least 50 percent. “In Catalonia, we guarantee total credit to the vast majority of SME customers of both entities over the next five years,” stated the BBVA Chair.
Carlos Torres Vila emphasized that the transaction does not adversely affect the public interest; on the contrary, it serves to benefit it. He pointed out that this is a positive development for society, as it is expected to generate an annual increase in lending of approximately €5 billion.
The BBVA Chair also noted the bank’s commitment to maintaining Sant Cugat as a major decision-making and business management center with global reach for the Group. “We firmly believe in territorial balance, and proof of this is that we already have major decision-making centers in different countries and territories. Our approach is not to impose a predefined model, but to build it together with the Banco Sabadell team,” he stated.
Regarding the Banco Sabadell brand, the BBVA Chair reiterated that it will be retained, alongside the BBVA brand, in those territories or business areas where it holds significant commercial interest. Torres Vila also cited examples from the Group’s history of maintaining distinct brands, such as Garanti BBVA in Türkiye and the use of the Bancomer brand in Mexico, which was retained for more than 20 years.