Onur Genç (BBVA): The process in the Banco Sabadell transaction "is actually relatively straightforward"
BBVA CEO Onur Genç, speaking on Wednesday at Bank of America's annual investor conference, stated that the process in the Banco Sabadell transaction is actually relatively straightforward. "Spain has excellent institutions, and the CNMC, the competition supervisor, is certainly one of them," he said. Genç noted that similar deals have been approved in the past and expressed confidence that, “If the same methodology is applied, the deal should be cleared in phase 1, as there are no competition issues.” On Mexico, he emphasized the country's highly positive prospects and reaffirmed that the bank "will continue to deliver reliable high returns."
Onur Genç stated that the BBVA-Banco Sabadell transaction is progressing according to the bank's plan and timeline. He highlighted that the deal has already received approval from competition authorities in several countries, as well as the UK PRA, and has received no-oppposition from the European Central Bank.
Required next steps include approval from the Spanish competition regulator (CNMC) and the authorization of the offer by the Spanish securities market regulator (CNMV).
On the Spanish government's position, the CEO noted that its opinion will come at the merger stage. He explained that if the necessary authorizations are in place and more than 50 percent of Banco Sabadell's shareholders accept the share exchange, there is no reason for the executive branch to oppose the merger. In any event, he added that BBVA is confident it can work with the government to address "any concerns it may have about the transaction."
Regarding CNMC's review, Onur Genç explained that similar mergers in the past have received competition approval and that, if the same methodology is applied, there should be no competition concerns. He pointed out that the transaction would not exceed the EU's merger thresholds: a 25 percent market share for the combined entity and a 10 percent share for the acquired entity. "We are convinced the transaction should be approved in phase 1, as there are no competition issues," he emphasized.
Bright outlook for Mexico and Türkiye
Onur Genç stated that the outlook for Mexico remains highly positive, despite recent volatility. He noted that Mexico has strong potential due to its proximity to the United States and its extremely low production costs. Financially, he emphasized that Mexico has a low level of debt and significant room for financial leverage.
"We believe the newly elected government has clearly outlined its priorities: private investment, Mexico's growth, and 'nearshoring,'" Onur Genç said. Despite some short-term uncertainties, "BBVA is very positive about Mexico. The country's fundamentals are solid, and that's what matters most to us." The BBVA CEO added that the Group has "an incredible franchise" in Mexico, which will continue to deliver reliable high returns.
When asked about competition from new digital entrants in Mexico, Onur Genç noted that BBVA has gained five million new customers in the past two years, 85 percent of them through digital channels. "We are the largest fintech in Mexico," he said.
Regarding Türkiye, Onur Genç explained that while the economy has significant potential, it still faces notable imbalances. He stressed that the new economic leadership is clearly focused on controlling inflation as a key step toward establishing a healthier and more sustainable growth model. Against this backdrop, he emphasized that Garanti BBVA, the Group's Turkish franchise, is likely the best bank in the country, with a proven ability to deliver outstanding results.
