GQG Partners, one of the largest shareholders of Spanish bank BBVA (BBVA.MC), has sold its stake due to concerns over BBVA’s pursuit of a hostile takeover bid for domestic rival Banco Sabadell (SABE.MC), according to a report by the Financial Times on Sunday.
GQG reportedly made the decision to exit by July, after informing BBVA’s management that it believed the Sabadell bid would be too time-consuming and could distract from BBVA’s emerging markets strategy. The sale also comes as the bid raised concerns about diluting GQG’s exposure to those markets.
BBVA’s 12.23 billion euro ($13.29 billion) takeover proposal for Sabadell, initially made in April, became hostile in May after Sabadell’s board rejected the offer. BBVA then took the proposal directly to Sabadell’s shareholders.
While the Spanish government has expressed opposition to the deal, the European Central Bank approved it in September. However, Spain’s stock market regulator, the CNMV, and the country’s antitrust watchdog, the CNMC, have yet to authorize the merger. The review process could extend into the first quarter of 2025, especially if a deeper analysis is required.
Under Spanish law, the government cannot block a takeover bid but has the final say on whether a merger can proceed. Both the CNMV and CNMC must approve the deal for it to move forward.