Banco Bilbao Vizcaya Argentaria (BBVA) has received permission from Mexico’s competition authority to take indirect control of Banco Sabadell’s operations in the country.
This brings BBVA closer to the $12 billion hostile takeover of its smaller competitor.
As BBVA announced on Monday, the supervisory authority known as Cofece has given the green light to the indirect acquisition of Sabadell shares in several subsidiaries in Mexico. BBVA does more than half of its business in Mexico. “The notified transaction would be unlikely to affect the competitive process and free economic activity,” Cofece said, according to BBVA.
BBVA launched a hostile takeover of Sabadell in May after the smaller rival’s management refused to agree to the plan. The deal still needs to be approved by Spanish regulators and Sabadell shareholders. The Spanish government has already expressed concerns about the project, while the EU Competition Commission has no objections to the takeover.
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