Brussels Rebukes Spain for Blocking BBVA–Sabadell Merger Bid

The European Commission has issued a stern warning to the Spanish Government over its alleged interference in BBVA’s attempt to acquire Banco Sabadell, accusing Madrid of obstructing a lawful cross-border corporate transaction in breach of EU single market rules.

According to documents seen by Reuters, officials in Brussels have expressed concern that Spain’s actions could distort competition and undermine investor confidence, especially in the financial services sector. The Commission is reportedly considering whether to escalate the matter through formal infringement proceedings unless Spain steps back from what the EU views as unjustified regulatory obstruction.

BBVA’s proposed all-share takeover bid, first launched earlier this year, would create one of the largest banking groups in the eurozone. However, the Spanish Government, led by President of the Government Pedro Sánchez, has publicly opposed the deal on the grounds of preserving market plurality, protecting employment, and avoiding regional disinvestment, particularly in Sabadell’s home base of Catalonia.

The Ministry of Economy has previously hinted it could use regulatory tools to halt the merger, sparking pushback not only from BBVA executives but also now from the European Commission, which has reminded Spain of its obligation to uphold EU competition laws and not to politicise corporate decisions involving listed entities.

A senior EU official stated anonymously:

“We are monitoring this very closely. Member states cannot block lawful mergers for political reasons. That would be a dangerous precedent.”

BBVA maintains that the merger is financially sound, legally robust, and in the interest of shareholders. Sabadell’s board, however, has so far resisted the offer, and negotiations remain tense amid political and media scrutiny.

Economists and analysts are watching the outcome closely, as it could signal how far EU authorities are prepared to go in defending the integrity of the single market against nationalist or protectionist impulses, especially in strategically sensitive sectors like banking.

The Spanish Government has yet to issue an official response to the Commission’s remarks, though sources within the Economy Ministry insist they are acting “within legal and constitutional parameters.”