BBVA Gets the Green Light for Sabadell Unit Deal in Mexico

BBVA announced on Monday that it has received approval from Mexico's competition authority Cofece to take indirect control of the shares of Sabadell's Mexican units. This authorization is a critical step in the Spanish banking giant's efforts to acquire Sabadell, which has been characterized as a hostile takeover bid.

BBVA is seeking various regulatory approvals to advance its offer for Sabadell in Mexico, which it views as its primary market and is responsible for nearly half of its profits. The Mexican authority's decision reflected a belief that the transaction is unlikely to significantly affect "competitive processes and free economic activity."

The approval from Cofece signifies progress for BBVA in a process closely scrutinized by regulatory bodies. In Spain, the initial bid amount of 12.28 billion euros ($13 billion) that BBVA proposed for Sabadell has come under a longer antitrust review by the country's competition authority, as announced last month.