Finance
ECB Open to BBVA-Sabadell Tie-Up, Easing Path to Potential Deal
- Takeover would balance BBVA’s exposure to emerging markets
- Spanish government has said it has final word on the deal
Photographer: Dani Pozo; Joseph Lago/AFP/Getty Images
The European Central Bank is supportive of a tie-up between Banco Bilbao Vizcaya Argentaria SA and Banco de Sabadell SA, potentially making necessary approvals easier if the deal comes to fruition.
The euro area’s top banking regulator sees Sabadell’s focus on lending in Spain as a counterweight to BBVA’s tilt toward emerging markets such as Mexico and Turkey, people familiar with the matter said. A larger balance sheet in turn is seen as helping diversify Sabadell’s exposure to small and medium-sized enterprises, they said, asking not to be named discussing private information.