The BBVA/Sabadell Case: Government Oversight In Spanish Merger Control

The proposed takeover of Banco Sabadell by BBVA has attracted significant attention and widespread media coverage, putting Spain's merger control regime under the spotlight. Following conditional clearance from the Spanish Competition Authority (CNMC), the transaction prompted an unusual degree of government involvement. This included a public consultation launched by the Ministry of Economy and, subsequently, the imposition of additional and more stringent conditions by the Council of Ministers. These actions have sparked legal debate and raised questions about the limits of governmental authority in merger control. The European Commission has reportedly announced that it is considering initiating infringement proceedings against Spain.