Spain's CNMV to study competition review before BBVA/Sabadell decision
To ensure Sabadell investors can decide in an informed manner
Investors may need more info if tough antitrust conditions set
BBVA's hostile bid for Sabadell opposed by Spanish government
Adds more quotes
By Jesús Aguado
MADRID, Oct 8 (Reuters) -Spain's stock market supervisor CNMV will analyse a competition review of banking group BBVA's BBVA.MC bid for smaller rival Sabadell SABE.MC before deciding when it might give a green light for the deal, the head of the CNMV said on Tuesday.
Rodrigo Buenaventura told a parliamentary committee the CNMV's main role was to safeguard Sabadell's shareholders' rights to decide whether or not to accept the offer in "a free and informed manner", and that the outcome of the competition review could be a critical part of this.
In May, BBVA said it expected the approval process for its hostile bid to take around six months, at which point it would take the offer to Sabadell shareholders. It added the take-up period for the offer should take a maximum of 70 days.
BBVA's bid is opposed by Sabadell management and the Spanish government, but was given the green light by the European Central Bank on Sept. 5.
Under Spanish law, the government cannot stop a bid from being made, but it has the final word on whether a merger goes ahead. The deal must also be authorised by the CNMV and the antitrust watchdog, CNMC.
Buenaventura said he didn't know whether the competition review would be a phase one process, which takes at least a month, or go to a rarer phase two process, taking around three months.
"If the conditions of competition (review) that are imposed are very tough and change the result of combined group after the takeover bid, then logically the vision, the information that the shareholders have to form a judgement could be very different," Buenaventura said.
($1 = 0.9106 euros)
Reporting by Jesús Aguado; Editing by David Latona and Mark Potter
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