BBVA gets green light from Mexico for Sabadell unit deal

On Monday, BBVA (BME:BBVA ) announced it received approval from Mexico's competition authority, Cofece, to take indirect control of the stakes that Sabadell holds in its Mexican units.

This authorization is a crucial step in the Spanish banking giant's efforts to acquire Sabadell, a move that has been characterized as a hostile takeover bid.

BBVA, which considers Mexico as its primary market responsible for about half of its profits, has been seeking various regulatory approvals to proceed with its bid for Sabadell.

The Mexican authority's decision indicated a belief that the transaction would have a "low probability of impacting the competition process and free economic activity."

The approval from Cofece signifies progress for BBVA in a process that has been closely scrutinized by regulatory bodies. In Spain, BBVA's initial bid of 12.28 billion euros ($13 billion) for Sabadell has been subjected to a more extended antitrust review by the nation's competition watchdog, which was announced last month.

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Source: Investing.com