The COMPETITION ROOM OF THE national COMMISSION OF MARKETS AND COMPETITION (CNMC) He has approved BBVA’s hostile OPA on Sabadell in phase 2 and with commitments, as reported by the agency.
CNMC has detected risks in retail banking marketsboth in services provided to individuals, such as SMEs and self -employed, as well as in payment media markets, but considers that the commitments presented by BBVA are “adequate, sufficient and provided” to solve the problems that this concentration involves for competition in the affected markets.
Almost a year after your analysis began, The CNMC has given its verdict unanimously with a series of commitments (‘remedies’ in jargon) to guarantee the presence of Sabadell offices and access to cashiers in poorly populated areas, with low or low competition income. Most commitments will last three years (36 months), extendable for another two years in the case of credit to SMEs; and from a year and a half (18 months) in the case of ATMs.
The CNMC will supervise the fulfillment of the commitments during the stipulated time. BBVA must inform competition in the agreed deadlines for it.
“This authorization is not final. It will be communicated to the Minister of Economy, Commerce and Company to decide whether to proceed to the Council of Ministers that, where appropriate, may assess the operation according to criteria of general interest other than the defense of competition, “added the agency in the statement.
Thus the known as phase 3 begins. The Ministry of Economy has a period of 15 days to decide if it takes it to the Council of Ministers, while in turn, the Council has a period of 30 days to expand the conditions to the operation.
In the event that the OPA also achieves the approval of the Council of Ministers, the next step will be the approval by the National Securities Market Commission (CNMV) of the admission brochure and, subsequently, the opening of the acceptance period, which means that the decision will be already in the hands of Sabadell’s shareholders.
He Ministry of Economy, Commerce and Business It will analyze the opinion of the National Commission of Markets and Competition (CNMC) on the BBVA Public Acquisition (OPA) Public Offer on Banco Sabadell.
“Once we receive the CNMC report we will analyze it with rigor and detail, as we have already indicated. Until all the information and perform that analysis, maximum prudence,” these same sources have indicated.
Sabadell criticizes the CNMC methodology to approve BBVA OPA and considers that “it is not adequate”
Banco Sabadell has criticized the methodology used by the National Commission of Markets and Competition (CNMC) to approve BBVA’s public acquisition offer (OPA) on the Catalan bank, as detailed in a statement.
“Banco Sabadell has opposed the entire analysis process to the methodology used by the CNMC because he understands that it is not suitable for analyzing the union of banking business for SMEs and that, therefore, does not allow to know the consequences that this concentration has for those customers,” said the opted entity.
In any case, the bank led by César González-Well has recalled that it will be the shareholders who decide whether they accept or reject the BBVA offer.
Risks detected
“The operation affects the financial sector“, says the CNMC in its press release to publicize the verdict. Regarding the retail bank, the agency states that the concentration involves the creation of a” leader “entity in several segments, both for individuals and for SMEs and autonomous.
Thus, it has identified 96 municipalities in which, after the operation, the 50% joint share with addition to 15% is exceeded, resulting in a “duopoly” situation in 48 of these municipalities.
Likewise, competition has identified 72 postal codes in which after the operation or monopoly situation will be generated as a result of the concentration (in seven postal codes), or a duopoly situation (in 65 postal codes).
Regarding Payment Services Marketthe resulting entity exceeds 30% joint fee in Spain, so the CNMC states that there is “a risk of worsening commercial conditions” by increasing the price to trade that demands the services for the acquisition of payment operations (which are carried out through TPVs or dataphonds).
The risks detected by the CNMC are: worsening commercial conditions for individuals, SMEs and autonomous in certain locations; of financial exclusion; of credit reduction to SMEs; Risks related to the market for the provision of acquisition of payment operations; and worsening of the conditions of access to ATMs for customers in relation to the agreements currently maintains Banco Sabadell with the Euro6000 and Cardtronics network.
BBVA commitment
For its part, BBVA has proposed a series of commitments that the CNMC considers “enough, adequate and provided” to solve the competition problems detected.
On the one hand, the bank has promised to create and advertise a ‘account for vulnerable clients’and identify the clients of both entities that can benefit from the favorable conditions of said account, as well as publish on their website and communicate to Sabadell’s clients about the changes in conditions that could apply.
As for the MAINTENANCE OF PHYSICAL PRESENCE IN CETER TERRITORIESBBVA has committed to not abandoning any municipality in which, as a consequence of the operation, one of the parties is present with a single competitive office, including eight municipalities in which the parties are currently without any competitor, or there is no other office of the resulting entity less than 300 meters away.
Nor will it close, in any case, the 35 specialized offices in Sabadell companies and maintain its managers; nor in those municipalities in which the per capita income of the population is less than 10,000 euros as of the resolution (around 200 municipalities), or in those municipalities of less than 5,000 inhabitants in which at least one of the parties is present (identified more than 150 municipalities).
BBVA has committed to the CNMC to Maintain office schedules which have cash service and offer the Cash post service for free twice a week, as well as not to close displaced cashiers of the parties in the locations where there is one or no competitor.
About the commercial conditionsBBVA has promised to maintain the conditions of the clients (individuals, SMEs and autonomous) of both parties in the offices where a monopoly (7), duopoly (65) or where the resulting entity will have two competitors (96), being a total of 168. The commitment implies the non -modification of products of defined and indefinite, safe to offer more favorable conditions.
In the case of SMEsthe bank will continue to maintain a commercial policy at the national level of products and prices; And it will not offer a higher price than the national average for the new credit flow for SMEs and freelancers.
About the ATMsthe entity has committed, with respect to Sabadell’s agreements with the Euro6000 and Cardtronics network, that, in case of finishing them, its clients are offered access to the ATMs that were owned by Sabadell in the same conditions provided for in said agreements.
