The Wall Street Journal | Financial Services Roundup: Market Talk

Competition concerns on the BBVA-Sabadell deal seem surmountable but the real issue is the political landscape, MKP Advisors’ Thomas Nienaber says in a market comment. Spain’s competition watchdog approved the takeover, noting that the remedies put forward by suitor BBVA addressed its concerns. The government now has the final say on whether to submit this for a further investigation. Few seem to have a clear view on how this will play out given how politicized this situation has been from the start, Nienaber writes. Opinions depend on where one sits on the Spanish political spectrum and the debate on Catalonia, Nienaber says. “The question essentially boils down to where in those negotiations between Madrid and Barcelona features Sabadell and its future as an independent Catalan entity–and we have no clear answer” he adds.

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