BBVA proposes new measures to competition watchdog to clinch green light for Sabadell bid
MADRID, Nov 20 (Reuters) -Spanish bank BBVA BBVA.MC on Wednesday committed to taking a series of measures to try to secure a green light from antitrust regulator CNMC for its proposed hostile takeover of smaller rival Banco Sabadell SABE.MC.
BBVA said these new commitments sought to "ensure financial inclusion, bolster lending to small and medium-sized enterprises (SMEs) and enhance competitiveness" and thus expedite authorisation for the merger with Sabadell.
The measures, which are mainly targeted at the Catalonia and Valencia regions, include a pledge not to close branches where there is no alternative nearby and to maintain commercial terms for individuals and SMEs in areas where fewer than four financial institutions operate.
BBVA also said it would preserve working capital lines for all SMEs for 18 months and maintain the current total credit volume for businesses that exclusively work with BBVA and Sabadell.
Last week, CNMC said that BBVA's all-share offer for Sabadell, initially valued at 12.28 billion euros ($12.93 billion) must undergo a longer antitrust review that could extend the process well into 2025.
Since BBVA's bid was announced on April 29, its shares have fallen around 18%, now valuing the offer at around 10 billion euros.
($1 = 0.9497 euros)
Reporting by David Latona and Jesús Aguado; Editing by Jane Merriman
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