GQG Partners, one of the largest shareholders of Spanish bank BBVA, has decided to sell its stake due to the bank’s pursuit of a hostile bid for domestic rival Banco Sabadell, according to a report by the Financial Times. The decision to sell was made by GQG in July, as they believed that the Sabadell bid would be too time-consuming and distracting, as well as diluting their exposure to emerging markets.
BBVA announced a 12.23 billion euro ($13.29 billion) takeover bid for Banco Sabadell in April, which turned hostile in May when the bid was taken directly to Sabadell’s shareholders after being rejected by the target’s board. Despite opposition from the Spanish government, the European Central Bank approved the deal in September.
However, the acquisition still requires authorization from Spain’s stock market advisor CNMV. The CNMV stated this month that it will review the competition aspects of the bid before giving its approval. Additionally, the deal must also be authorized by Spain’s antitrust watchdog CNMC, which could prolong the process until the first quarter of 2025 if further analysis is needed.
According to Spanish law, the government does not have the power to prevent a bid from being made, but it does have the final say on whether a merger can proceed. Both the CNMV and CNMC must authorize the deal for it to move forward.
($1 = 0.9204 euros)
(Reporting by Chandni Shah in Bengaluru; Editing by William Mallard and Alison Williams)