The National Markets and Competition Commission (CNMC) has decided to open the second phase to analyze the acquisition of Banco Sabadell by BBVA. Sending this operation to phase 2 has several implications, both in terms of terms and possible final resolution. If we take a look at the decisions of concentration operations authorized by the CNMC in recent years, we notice how the second phases tend to represent only between 1% and 3% of the total resolutions. The precedents of concentration operations in the banking sector show us how these have been approved in the first phase, in some cases with compromises. This is what happened in the cases of CaixaBank-Bankia, Unicaja-Liberbank or BBVA – Catalunya Caixa. In fact, this operation is the first in the Spanish financial system to go to the second phase, in a precedent that benefits Sabadell.
Competition authorities have a guarantor position towards the welfare of consumers and the defense of the competitive process. Thus, a second phase involves a more exhaustive analysis than the one carried out so far by the authority, when competition problems are identified that may require additional information. It is therefore good news that caution is exercised when an irreversible deterioration of competitive conditions in a market may occur.
The Catalan Competition Authority (ACCO) has already published an analysis on the impact in terms of competition that the operation could have in Catalonia. The ACCO does not participate directly in the analysis process of concentration operations, since the regulations attribute them exclusively to State bodies, but its report warned that this concentration operation could have a negative impact on competition and the well-being of consumers in Catalonia. The resulting entity would be the main operator in Catalonia in the credit granting market for families and companies, and the second entity in terms of bank offices. Now the Generalitat will also have the opportunity to pronounce on this concentration.
An additional implication is that the resolution in phase 2 will necessarily have to be notified to the Ministry of Economy. In turn, the minister could decide to raise this concentration operation to the council of ministers. The Spanish government’s opposition to BBVA’s hostile bid is well known. This situation could be used to try to prohibit concentration for reasons beyond those strictly related to competition policy, and make the issue much more political.
