The Spanish government is meticulously examining BBVA's €14 billion hostile takeover bid for Banco Sabadell. This move follows concerns highlighted by Economy Minister Carlos Cuerpo regarding potential job losses and the broader implications for financial inclusion and territorial cohesion. The deal's scrutiny goes beyond typical market competition issues and has been forwarded to the cabinet for thorough review.

In an unusual step, a non-binding public consultation is being conducted to capture the sentiments of both the public and business sectors. As reported by Reuters, this consultation is unprecedented and aims to influence the government's decision-making process, with a final decision anticipated by the end of June. Meanwhile, the deal has already cleared hurdles from regulatory bodies, having received conditional approval from Spain's competition authority, CNMC, and the European Central Bank.

Despite these approvals, the merger faces opposition from Sabadell's board and Catalonia's business community, who have expressed a strong preference for maintaining Sabadell's independence. If the government restricts or blocks the full merger, Reuters notes that BBVA might explore acquiring a majority stake in Sabadell and pursue full integration at a later stage.