BBVA readies remedies to secure Sabadell deal despite competition setback
BBVA CEO expects to win approval in the next few months
CEO says bank to walk away if value creation compromised
Broker Kepler sees higher risk of deal falling through
Adds comments from analyst in paragraph 7, more details on competition findings in 8-10
By Jesús Aguado
MADRID, Nov 13 (Reuters) -Spanish bank BBVA BBVA.MC is working on concessions aimed at securing regulatory approval for a takeover of rival Sabadell SABE.MC "in a few months", CEO Onur Genc said on Wednesday.
Spain's competition watchdog CNMC said on Tuesday that BBVA's hostile all-share bid for Sabadell, initially valued at 12.28 billion euros ($13 billion), must undergo a longer antitrust review that could extend the process well into 2025.
Since BBVA's bid was first announced on April 29, its shares have fallen around 18%, now valuing the offer at around 10 billion euros.
"We expect that the transaction will be approved in the next few months (...) but reserve the right to walk away if the value creation potential is compromised," Genc told a banking event.
"(In that case), we will not hesitate one second," he said, adding that the bank's priority was to finalise the remedies needed to clinch approval.
The in-depth review could require BBVA to make greater concessions and allow the government, which has opposed the deal, to step in - meaning stricter remedies could ensue.
Broker Kepler Cheuvreux said there was "a growing risk of the BBVA-Sabadell deal falling through ... because Sabadell shareholders may view BBVA shares riskier and less valuable under current conditions".
The CNMC said it would deepen its analysis as both banks were involved in the insurance, pensions and asset management markets.
In this longer analysis, which takes around three months, the lenders and third parties may submit opinions. The CNMC will also request reports from regions in which the deal could have a significant impact, such as Catalonia.
($1 = 0.9423 euros)
Reporting by Jesús Aguado; Editing by David Latona and Mark Potter
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