Spanish government opposes BBVA’s $13 billion Sabadell hostile bid

MADRID/BARCELONA, May 9 (Reuters) – Spain’s government opposes BBVA’s (BBVA.MC), opens new tab hostile takeover bid for its smaller rival Sabadell (SABE.MC), opens new tab, Economy Minister Carlos Cuerpo said on Thursday.

Under Spanish law, the Economy Ministry has the power to block any merger or acquisition of a bank. The government has six months to decide after consulting with regulators including the Bank of Spain and the securities regulator CNMV.

BBVA, Spain’s second-largest bank, on Thursday presented a 12.23 billion euro ($13.11 billion) takeover bid directly to Sabadell’s shareholders after its target’s board earlier this week rejected the proposal on the same terms.