The Spanish government has imposed additional conditions on BBVA's planned €14 billion ($16 billion) takeover bid for Banco Sabadell, marking another regulatory hurdle more than a year after the deal was first proposed. BBVA has adjusted its internal estimates, now expecting synergies from the takeover to be around €300 million, down from earlier projections. The bid documentation has been updated to reflect the effects of Sabadell's sale of its British subsidiary TSB and the associated dividend. The sale of TSB has drawn attention from credit rating agency Scope Ratings, which noted that it reduces Sabadell's business to a solely domestic focus and described the timing of the exit from the UK market as "questionable." Scope also highlighted that the TSB sale adds complexity to the valuation of Sabadell in the context of BBVA's takeover bid. Meanwhile, the Bank of Spain has initiated procedures to raise the countercyclical capital buffer to 1%, a separate regulatory development in the banking sector.

Spanish lender BBVA has launched a fully digital retail bank in Germany, offering highly competitive conditions that challenge the traditional German banking market. The new online bank features a no-fee account, 3% interest rates, and cashback offers aimed at attracting customers. BBVA, a major publicly traded institution valued at nearly twice the market capitalization of Deutsche Bank, is expanding its digital banking footprint across Europe. However, the launch in Germany faced initial difficulties due to inadequately adapted IT systems and overwhelmed customer service.

Despite these challenges, BBVA's entry is expected to pressure competitors in the German banking sector. Meanwhile, BBVA is also active in other markets, permitting operations with cryptocurrencies such as bitcoin and ether, and is planning to issue a five-year senior non-preferred bond in euros. Other Spanish banks like Santander and CaixaBank are exploring similar digital asset services and offering incentives up to 1,000 euros to new customers. In Spain, Revolut has reached five million customers, consolidating its position as the third-largest market in Europe after the UK and France. Additionally, Banca March has extended a six-month deposit at a 2.11% annual interest rate until mid-September.

Banco Bilbao Vizcaya Argentaria SA has made Bitcoin and Ether trading and custody available to all retail clients in Spain through its mobile application, becoming the first Spanish lender to integrate cryptoasset services directly into its core banking platform. The feature, rolled out nationwide on 4 July, allows customers to buy, sell and hold the two largest digital currencies without using third-party custodians. Trades carry a 1.49% fee, while custody is free and external transfers are charged 4%. Access is limited to users with biometric authentication and is offered strictly on a self-directed basis, with no investment advice.

The service was cleared by Spain’s securities regulator, the CNMV, and complies with the European Union’s new Markets in Crypto-Assets (MiCA) framework. BBVA first piloted crypto trading for private-bank clients in Switzerland in 2021 and extended the model to Turkey in 2023; Spain is its third market and the first where the product targets mass-market customers. The move underscores the growing adoption of digital assets within mainstream European banking as regulators finalise bloc-wide rules designed to give investors greater protections.

The Ibex 35 index experienced volatility amid geopolitical and trade tensions between late June and early July 2025. Following a US military attack on Iran, the Ibex 35 dropped below 13,800 points, declining by 0.7% at the opening on June 23. It later recovered to around 13,800 points, closing nearly flat with a slight 0.08% decrease by the end of that day. After a de-escalation in US-Iran military tensions, the index regained momentum, surpassing 14,000 points by June 24.

Throughout the last week of June and early July, the Ibex 35 fluctuated around the 14,000-point mark, with gains supported by sectors such as banking, steel producers, and companies like Sabadell, Santander, and Indra, which saw rises of over 5%. The index posted weekly gains close to 1.5% over four sessions ending July 4 but faced downward pressure from renewed US tariff threats, particularly from President Donald Trump. These threats led to a drop of approximately 1.48% on July 4, causing the Ibex 35 to fall below 14,000 points again, with banking, energy, and retail sectors like Inditex among the hardest hit. Despite this, the index closed the week almost flat at around 13,900 points. In the following days, the Ibex 35 showed cautious recovery, regaining the 14,000-point level by July 7, buoyed by a 2% rise in banking stocks and gains in airline group IAG. The market remained sensitive to ongoing US tariff negotiations, with the deadline for trade agreements set for August 1. On July 8 and 9, the Ibex 35 hovered around 14,000 to 14,148 points, showing resilience despite new tariff threats from Trump targeting copper and pharmaceutical sectors. Overall, the Ibex 35 demonstrated a volatile but resilient performance amid geopolitical conflicts and trade tensions, with investor focus on US tariff policies and commercial negotiations.

The proposed takeover bid (OPA) by BBVA for Banco Sabadell has encountered multiple challenges and uncertainties following government intervention and recent strategic moves by Sabadell. The Spanish government temporarily suspended trading of both banks' shares to prevent asymmetric information and volatility before a ministerial council meeting. Subsequently, the government imposed new conditions on the BBVA bid, citing concerns about the impact on small and medium-sized enterprises and social security accounts, which has led to division among analysts regarding the deal's viability. Foment declared the BBVA offer effectively nullified due to these governmental conditions.

Sabadell's management and minority shareholders have expressed skepticism about the bid, with Sabadell's CEO González-Bueno stating that the offer lacks sense and that BBVA must recalculate expected synergies. Sabadell has also initiated the sale of its UK unit, TSB, to Santander for nearly $4 billion, a move that complicates BBVA's unsolicited takeover attempt. The bank plans to distribute an extraordinary dividend of €2.5 billion to shareholders from the TSB sale proceeds, which Sabadell warns will be irreversible once approved at an extraordinary general meeting. BBVA is permitted to issue a supplementary prospectus for its takeover offer once the TSB sale is approved. BlackRock has increased its stake in Sabadell following the government's ruling. Analysts suggest BBVA needs to improve its offer price, which is currently viewed as insufficient, especially after the TSB sale. The situation remains fluid, with legal challenges and shareholder decisions expected to shape the outcome of the BBVA-Sabadell merger attempt.

The Spanish government has approved the transfer of over 40,000 residential units and approximately 2,400 plots of land from Sareb, the so-called 'bad bank,' to Sepes, the newly established state-owned housing company. This move aims to expand the public housing stock and promote affordable rental housing. The transferred land has the potential to support the development of an additional 55,000 affordable rental homes, bringing the total public housing capacity to around 95,000 units. The government plans to make 13,000 of these public homes available to citizens in the coming months and has called on regional authorities to collaborate in tripling investment in public housing.

Sareb is required to vacate the properties before the handover to Sepes, which will prioritize the best assets initially and delay the transfer of social housing units. Sareb will continue to operate as a company in liquidation beyond 2027. The transfer impacts major financial institutions such as BBVA and CaixaBank, which are left with approximately €5.9 billion in uncertain assets as a result.

Banco Bilbao Vizcaya Argentaria SA has opened a fully digital retail bank in Germany, its second such venture in Europe after launching a similar service in Italy in late 2021. The Spanish lender is offering German customers a current account with 3% annual interest on deposits for the first twelve months, a no-fee debit card that returns 3% of purchases, and instant SEPA transfers, all under a licence supervised by BaFin and backed by the EU deposit-guarantee scheme up to €100,000.

BBVA’s app-based service provides German IBAN accounts and access to more than 70,000 cash points, positioning the group against local online banks that currently pay markedly lower rates. The bank has attracted about 700,000 clients in Italy and targets one million there by end-2026; it did not disclose specific goals for Germany. BBVA, whose market capitalisation is almost twice that of Deutsche Bank, said the launch advances its strategy of expanding digital retail operations across major European markets.

Separately, the group extended a €170 million credit line to Banco do Brasil to support small and medium-sized enterprises, underscoring its broader international growth agenda.

The Spanish Supreme Court has ruled in favor of consumers affected by mortgage floor clauses, endorsing the right to file collective lawsuits against banks. This decision supports a large-scale legal action promoted by the consumer association Adicae, which targets around one hundred financial institutions. The ruling follows a 2024 judgment by the Court of Justice of the European Union (TJUE) that also validated Adicae's collective claim. Several banks had challenged the case through extraordinary appeals on procedural grounds, but the Supreme Court has dismissed these challenges, confirming the legitimacy of the collective demands.

Meanwhile, in the banking sector, BBVA's takeover bid for Sabadell is approaching its conclusion, with the Spanish government expected to impose new conditions on the offer. According to reports, the acceptance period for the bid is unlikely to start before mid-July and will probably avoid August, with the final decision anticipated in September. BBVA acknowledges the possibility that the government could cause delays or even lead to the withdrawal of the bid but does not expect additional commitments at this stage.

Banco Sabadell is exploring the sale of its British unit, TSB Banking Group PLC, amid a hostile takeover bid by rival Spanish bank BBVA. Sabadell has received preliminary non-binding expressions of interest for TSB, with potential buyers including Banco Santander and Barclays. NatWest initially showed interest but has since ruled out bidding for the unit. The sale is seen as a strategic move by Sabadell to complicate BBVA's takeover attempt, potentially forcing BBVA to reconsider its bid.

The transaction is expected to be agreed upon in the coming weeks and will require approval from Sabadell's shareholders. The Spanish financial regulator CNMV is reviewing whether the possible sale complies with the duty of passivity rules in the ongoing BBVA takeover offer. BBVA's chairman Carlos Torres criticized the timing of Sabadell's decision but stated that the sale would not derail BBVA's bid. The Spanish government is set to intervene in the BBVA takeover process, with a decision expected on June 24. Market analysts note that the sale of TSB, valued at over 2 billion euros, could provide Sabadell with capital to pursue other mergers in Spain or increase dividends to thwart the takeover. The potential sale adds complexity to European banking consolidation efforts and highlights the competitive dynamics among Spanish banks in the UK market.

Spain's second-largest bank, BBVA, has been advising its wealthy private banking clients since September 2024 to allocate between 3% and 7% of their portfolios to cryptocurrencies, specifically Bitcoin and Ethereum. This guidance is tailored according to clients' risk appetites and marks a shift from the bank's previous more cautious stance, which initially recommended 0% to 1-2% allocations. BBVA, a banking giant with approximately $40 billion in assets under management, is encouraging this diversification amid growing institutional confidence in cryptocurrencies as long-term asset classes. The move aligns with the full implementation of the European Union's Markets in Crypto-Assets (MiCA) regulation, which provides a clearer regulatory framework for crypto investments. Reuters and multiple financial news sources have confirmed BBVA's recommendation, highlighting the bank's strategic pivot towards embracing digital assets within its private banking services.

French banking group BPCE, the second-largest banking group in France and the fourth-largest in Europe, has agreed to acquire a 75% stake in Portugal's Novo Banco from U.S. private equity firm Lone Star Funds. The deal values Novo Banco at approximately €6.4 billion ($7.4 billion) and marks one of the largest bank acquisitions in the Eurozone in the past decade. BPCE's acquisition of Novo Banco, which was spun out of the collapsed Banco Espírito Santo in 2014 and purchased by Lone Star in 2017, is expected to establish Portugal as BPCE's second domestic market.

The transaction is seen as beneficial for the Portuguese state, which is set to recover nearly €2 billion previously injected into Novo Banco. The Portuguese Ministry of Finance confirmed the sale of an 11% stake in Novo Banco to BPCE and welcomed the outcome, which avoided a potential restructuring of the bank. The acquisition is part of a broader wave of banking consolidation in Southern Europe and is considered a key cross-border deal for the European banking sector. BPCE has no immediate plans to list Novo Banco on the stock market, and the deal was advised by CS’Associados. The transaction opens new avenues for BPCE in Portugal and Frankfurt, reflecting the group's ambition to expand its retail banking presence beyond France.

Mexico's economy is showing signs of stagnation and a potential slowdown in 2025 amid persistent inflation, lower growth, and declining remittances. Truck production in Mexico contracted by 12.9%, with 10,576 units manufactured, while auto parts production fell 8.2% in the first quarter due to tariffs. Industrial activity grew marginally by 0.1% in April compared to March but remained down 0.7% year-on-year. Despite these challenges, consumer spending in Mexico has demonstrated resilience.

Santander Mexico projects a near-zero GDP growth rate of 0.1% to 0.5% for 2025, with a more pronounced economic deceleration expected in the second half of the year due to ongoing uncertainty and delayed policy decisions. Banco de México (Banxico) officials, including Deputy Governor Jonathan Heath, have suggested pausing further interest rate cuts until inflation shows a clear downward trend, although a 50 basis point rate cut is still anticipated this month. Inflation is expected to approach 3.3% by year-end. Banxico also warned that a proposed 3.5% remittance tax, part of the "One Big Beautiful Bill," could discourage the use of regulated channels and negatively impact American families and small businesses by imposing surveillance and additional costs. The bank acknowledged that reduced remittance flows could affect retail banking deposits. Meanwhile, the International Monetary Fund forecasts Honduras's economy to grow 3.5% in 2025, slightly below its 3.6% expansion in 2024. The World Bank has also indicated that global economic growth will be lower than previously planned in 2025. Banxico Governor Victoria Rodríguez Ceja ruled out stagflation but highlighted ongoing economic weakness and persistent inflation, with expectations of improved economic performance starting next year.

The Spanish National Securities Market Commission (CNMV) is preparing to approve the prospectus for BBVA's takeover bid (OPA) for Sabadell as soon as the Spanish government issues its decision. The CNMV has maintained close communication with both BBVA and Sabadell since the beginning of the takeover process. Meanwhile, BBVA has ceased advertising its takeover bid and has simultaneously reduced its operating costs, becoming the only bank in Spain to do so amid the acquisition attempt. Additionally, the CNMV has authorized a partial self-takeover bid for shares of CIE Automotive.

Brazilian businessman Nelson Tanure has initiated discussions with key banks to support his bid for the petrochemical company Braskem, aiming to finalize a deal within the year. The bid involves collaboration with Novonor and seeks to increase the influence of state-controlled oil giant Petrobras in Braskem's operations, though Petrobras has stated it does not intend to re-nationalize the company. The contest for advisory mandates related to Braskem's restructuring has seen competition between financial firms Rothschild and Houlihan Lokey. With a potential change in control, Braskem is expected to undergo a debt restructuring. Meanwhile, the Brazilian government has acknowledged the possibility of leveraging Petrobras as a tool to increase revenue, amid concerns that government spending is impacting major firms including Petrobras, Vale, and Ambev.

Nadia Calviño, representing the European Investment Bank (EIB), has advocated for cross-border bank mergers within the European Union, referencing the BBVA takeover bid for Sabadell as context. She supports expanding the EIB's financing for the European defense industry, emphasizing the need to counter international movements by non-democratic regimes threatening liberal democracy. The EIB announced plans to allocate €3 billion in defense funds through partnerships with major European banks, including Deutsche Bank, to enhance the continent's security capabilities. Additionally, Calviño revealed the EIB will finance an electrical interconnection project between France and Spain, aiming to integrate the Iberian Peninsula into the broader European energy grid. Separately, an investigation highlighted that the European Defence Fund has provided millions in funding to an Israeli-owned drone manufacturer.

The Spanish National Court has issued a national arrest warrant for Khadem Abdulla Butti Al Qubaisi, former president of Cepsa—now Moeve—over alleged money laundering and tax fraud tied to the 2016 sale of Madrid's Torre Foster, also known as Torre Cepsa.

Judge José Luis Calama is investigating Al Qubaisi for laundering approximately 100 million euros and for failing to pay taxes on the gains from the transaction. The court alleges that Al Qubaisi used a network of shell companies, including Muscari Property BV and Muscari Development BV, created with the assistance of Edmond Rothschild bank, to conceal the illicit origin of the funds and evade Spanish tax obligations.

Read more

BBVA's takeover bid for Banco Sabadell has become a focal point in the Spanish banking sector, with BBVA aiming to expand its presence in the small and medium-sized enterprise (SME) segment, where Sabadell has a strong commercial foothold. The Spanish National Commission on Markets and Competition (CNMC) has released a report that challenges the Spanish Government's attempts to block the takeover, stating that Sabadell is not indispensable for SMEs, though there are risks for individual mortgage holders, particularly in Catalonia. Sabadell has estimated a potential €21.5 billion decline in credit availability to SMEs post-merger and has requested an eight-year safeguard period. Competing banks consider BBVA's proposed measures sufficient to mitigate possible credit reductions.

The International Monetary Fund (IMF) made a cryptic reference to the takeover in its annual report on Spain. Banco Sabadell's CEO, Josep Oliu, has expressed hope that the Government will consider the adverse effects of the takeover. Meanwhile, Spanish banking officials have acknowledged that fintech companies are not a significant competitive threat in this context. European Investment Bank (EIB) Vice President Nadia Calviño has endorsed cross-border bank mergers within the EU, referencing the BBVA-Sabadell deal. Separately, Banco Sabadell's private banking division has surpassed €66 billion in business volume, and its Mexican subsidiary plans to continue expanding market share under Albert Figueras. Additionally, CaixaBank and French Natixis have made bids for Novo Banco, with the Portuguese Government signaling potential obstacles to CaixaBank's offer and indicating that unemployment subsidies would not be paid in a merger between Novo Banco and BPI if it proceeds.

Voit Mexico has unveiled Aereus, the official match ball for the Liga MX Apertura 2025 tournament. The new ball features advanced technologies designed to enhance player performance and durability on the field. The Liga BBVA MX and Voit Mexico jointly presented the ball, which has been praised for its high quality and innovative design. The Aereus ball is expected to be used throughout the Apertura 2025 season, marking a technological upgrade for the league's official game equipment.

BBVA's takeover bid (OPA) for Banco Sabadell has encountered multiple legal and political challenges in Spain. BBVA sought protection from the European Commission against government intervention in the offer, which included a limit of 1.5 billion euros on the bid increase. The Spanish National Court (Audiencia Nacional) rejected requests to suspend the government's use of a public consultation process related to the OPA. Banco Sabadell has increased its treasury shares above 3.5% for the first time since 2013 to defend against the bid.

Sabadell's CEO, César González-Bueno, argues that there is no room for mergers among major Spanish banks like BBVA, Santander, or Caixa due to public interest concerns, emphasizing that the interest to be considered goes beyond solvency and competition. Political figures including former presidents Artur Mas, Pere Aragonès, and Ximo Puig, along with five former regional economy ministers from Catalonia and Valencia, have opposed the takeover, describing it as unjustified and against public interest. Yolanda Díaz, a prominent political leader, has also voiced strong opposition, noting that even the Church is against the OPA. The Catalan Parliament has formally requested the Spanish government to block the bid. The government is conducting a detailed analysis of the takeover, which remains under consideration by the Council of Ministers. Meanwhile, Banco Sabadell has proposed shareholder returns of 9% amid the takeover attempt. The PSOE party has aligned with ERC and Junts to seek banking licenses for the Catalan Institute of Finance (ICF) as a strategy to undermine the BBVA bid. The Spanish Competition Authority concluded that Sabadell is not essential for the SME sector. Additionally, Citi has reiterated a 'buy' recommendation for all Spanish banks except Sabadell and Unicaja, reflecting market skepticism about Sabadell's position amid the takeover attempt.

The Spanish People's Party (PP) has escalated its criticism of Prime Minister Pedro Sánchez, labeling his government as corrupt and mafioso amid discussions of a potential motion of no confidence. Despite acknowledging there are ample reasons for such a motion, the PP admits it currently lacks sufficient parliamentary support to proceed. PP leader Alberto Núñez Feijóo emphasized that the party's 2025 congress aims to address Spain's broader issues, contrasting it with the 2022 congress focused on internal party matters. Meanwhile, the government, represented by Vice President María Jesús Montero, has dismissed the notion of an alternative to the current progressive administration and criticized the PP for engaging in persistent mudslinging.

Regional leaders from the PP, including Isabel Díaz Ayuso, José Luis Martínez-Almeida, and Feijóo, have united in public events, such as Ayuso's mid-term celebration in Madrid's Parque Berlín, which featured music and community engagement. The PP continues to use the term "mafioso" to describe the government, coinciding with the seventh anniversary of the motion of no confidence that brought Sánchez to power. Additionally, controversies have emerged involving Ayuso's administration, including the hiring of Captain Bonilla and alleged connections to former minister Rafael Catalá in a hydrocarbons scandal, as well as ties to Alejandro Agag, son-in-law of former Prime Minister José María Aznar. The political discourse remains highly charged, with PSOE figures like Óscar and Patxi López responding to PP accusations by highlighting reciprocal criticisms.

The Spanish government has imposed additional conditions on BBVA's planned €14 billion ($16 billion) takeover bid for Banco Sabadell, marking another regulatory hurdle more than a year after the deal was first proposed. BBVA has adjusted its internal estimates, now expecting synergies from the takeover to be around €300 million, down from earlier projections. The bid documentation has been updated to reflect the effects of Sabadell's sale of its British subsidiary TSB and the associated dividend. The sale of TSB has drawn attention from credit rating agency Scope Ratings, which noted that it reduces Sabadell's business to a solely domestic focus and described the timing of the exit from the UK market as "questionable." Scope also highlighted that the TSB sale adds complexity to the valuation of Sabadell in the context of BBVA's takeover bid. Meanwhile, the Bank of Spain has initiated procedures to raise the countercyclical capital buffer to 1%, a separate regulatory development in the banking sector.

Spanish lender BBVA has launched a fully digital retail bank in Germany, offering highly competitive conditions that challenge the traditional German banking market. The new online bank features a no-fee account, 3% interest rates, and cashback offers aimed at attracting customers. BBVA, a major publicly traded institution valued at nearly twice the market capitalization of Deutsche Bank, is expanding its digital banking footprint across Europe. However, the launch in Germany faced initial difficulties due to inadequately adapted IT systems and overwhelmed customer service.

Despite these challenges, BBVA's entry is expected to pressure competitors in the German banking sector. Meanwhile, BBVA is also active in other markets, permitting operations with cryptocurrencies such as bitcoin and ether, and is planning to issue a five-year senior non-preferred bond in euros. Other Spanish banks like Santander and CaixaBank are exploring similar digital asset services and offering incentives up to 1,000 euros to new customers. In Spain, Revolut has reached five million customers, consolidating its position as the third-largest market in Europe after the UK and France. Additionally, Banca March has extended a six-month deposit at a 2.11% annual interest rate until mid-September.

Banco Bilbao Vizcaya Argentaria SA has made Bitcoin and Ether trading and custody available to all retail clients in Spain through its mobile application, becoming the first Spanish lender to integrate cryptoasset services directly into its core banking platform. The feature, rolled out nationwide on 4 July, allows customers to buy, sell and hold the two largest digital currencies without using third-party custodians. Trades carry a 1.49% fee, while custody is free and external transfers are charged 4%. Access is limited to users with biometric authentication and is offered strictly on a self-directed basis, with no investment advice.

The service was cleared by Spain’s securities regulator, the CNMV, and complies with the European Union’s new Markets in Crypto-Assets (MiCA) framework. BBVA first piloted crypto trading for private-bank clients in Switzerland in 2021 and extended the model to Turkey in 2023; Spain is its third market and the first where the product targets mass-market customers. The move underscores the growing adoption of digital assets within mainstream European banking as regulators finalise bloc-wide rules designed to give investors greater protections.

The Ibex 35 index experienced volatility amid geopolitical and trade tensions between late June and early July 2025. Following a US military attack on Iran, the Ibex 35 dropped below 13,800 points, declining by 0.7% at the opening on June 23. It later recovered to around 13,800 points, closing nearly flat with a slight 0.08% decrease by the end of that day. After a de-escalation in US-Iran military tensions, the index regained momentum, surpassing 14,000 points by June 24.

Throughout the last week of June and early July, the Ibex 35 fluctuated around the 14,000-point mark, with gains supported by sectors such as banking, steel producers, and companies like Sabadell, Santander, and Indra, which saw rises of over 5%. The index posted weekly gains close to 1.5% over four sessions ending July 4 but faced downward pressure from renewed US tariff threats, particularly from President Donald Trump. These threats led to a drop of approximately 1.48% on July 4, causing the Ibex 35 to fall below 14,000 points again, with banking, energy, and retail sectors like Inditex among the hardest hit. Despite this, the index closed the week almost flat at around 13,900 points. In the following days, the Ibex 35 showed cautious recovery, regaining the 14,000-point level by July 7, buoyed by a 2% rise in banking stocks and gains in airline group IAG. The market remained sensitive to ongoing US tariff negotiations, with the deadline for trade agreements set for August 1. On July 8 and 9, the Ibex 35 hovered around 14,000 to 14,148 points, showing resilience despite new tariff threats from Trump targeting copper and pharmaceutical sectors. Overall, the Ibex 35 demonstrated a volatile but resilient performance amid geopolitical conflicts and trade tensions, with investor focus on US tariff policies and commercial negotiations.

The proposed takeover bid (OPA) by BBVA for Banco Sabadell has encountered multiple challenges and uncertainties following government intervention and recent strategic moves by Sabadell. The Spanish government temporarily suspended trading of both banks' shares to prevent asymmetric information and volatility before a ministerial council meeting. Subsequently, the government imposed new conditions on the BBVA bid, citing concerns about the impact on small and medium-sized enterprises and social security accounts, which has led to division among analysts regarding the deal's viability. Foment declared the BBVA offer effectively nullified due to these governmental conditions.

Sabadell's management and minority shareholders have expressed skepticism about the bid, with Sabadell's CEO González-Bueno stating that the offer lacks sense and that BBVA must recalculate expected synergies. Sabadell has also initiated the sale of its UK unit, TSB, to Santander for nearly $4 billion, a move that complicates BBVA's unsolicited takeover attempt. The bank plans to distribute an extraordinary dividend of €2.5 billion to shareholders from the TSB sale proceeds, which Sabadell warns will be irreversible once approved at an extraordinary general meeting. BBVA is permitted to issue a supplementary prospectus for its takeover offer once the TSB sale is approved. BlackRock has increased its stake in Sabadell following the government's ruling. Analysts suggest BBVA needs to improve its offer price, which is currently viewed as insufficient, especially after the TSB sale. The situation remains fluid, with legal challenges and shareholder decisions expected to shape the outcome of the BBVA-Sabadell merger attempt.

The Spanish government has approved the transfer of over 40,000 residential units and approximately 2,400 plots of land from Sareb, the so-called 'bad bank,' to Sepes, the newly established state-owned housing company. This move aims to expand the public housing stock and promote affordable rental housing. The transferred land has the potential to support the development of an additional 55,000 affordable rental homes, bringing the total public housing capacity to around 95,000 units. The government plans to make 13,000 of these public homes available to citizens in the coming months and has called on regional authorities to collaborate in tripling investment in public housing.

Sareb is required to vacate the properties before the handover to Sepes, which will prioritize the best assets initially and delay the transfer of social housing units. Sareb will continue to operate as a company in liquidation beyond 2027. The transfer impacts major financial institutions such as BBVA and CaixaBank, which are left with approximately €5.9 billion in uncertain assets as a result.

Banco Bilbao Vizcaya Argentaria SA has opened a fully digital retail bank in Germany, its second such venture in Europe after launching a similar service in Italy in late 2021. The Spanish lender is offering German customers a current account with 3% annual interest on deposits for the first twelve months, a no-fee debit card that returns 3% of purchases, and instant SEPA transfers, all under a licence supervised by BaFin and backed by the EU deposit-guarantee scheme up to €100,000.

BBVA’s app-based service provides German IBAN accounts and access to more than 70,000 cash points, positioning the group against local online banks that currently pay markedly lower rates. The bank has attracted about 700,000 clients in Italy and targets one million there by end-2026; it did not disclose specific goals for Germany. BBVA, whose market capitalisation is almost twice that of Deutsche Bank, said the launch advances its strategy of expanding digital retail operations across major European markets.

Separately, the group extended a €170 million credit line to Banco do Brasil to support small and medium-sized enterprises, underscoring its broader international growth agenda.

The Spanish Supreme Court has ruled in favor of consumers affected by mortgage floor clauses, endorsing the right to file collective lawsuits against banks. This decision supports a large-scale legal action promoted by the consumer association Adicae, which targets around one hundred financial institutions. The ruling follows a 2024 judgment by the Court of Justice of the European Union (TJUE) that also validated Adicae's collective claim. Several banks had challenged the case through extraordinary appeals on procedural grounds, but the Supreme Court has dismissed these challenges, confirming the legitimacy of the collective demands.

Meanwhile, in the banking sector, BBVA's takeover bid for Sabadell is approaching its conclusion, with the Spanish government expected to impose new conditions on the offer. According to reports, the acceptance period for the bid is unlikely to start before mid-July and will probably avoid August, with the final decision anticipated in September. BBVA acknowledges the possibility that the government could cause delays or even lead to the withdrawal of the bid but does not expect additional commitments at this stage.

Banco Sabadell is exploring the sale of its British unit, TSB Banking Group PLC, amid a hostile takeover bid by rival Spanish bank BBVA. Sabadell has received preliminary non-binding expressions of interest for TSB, with potential buyers including Banco Santander and Barclays. NatWest initially showed interest but has since ruled out bidding for the unit. The sale is seen as a strategic move by Sabadell to complicate BBVA's takeover attempt, potentially forcing BBVA to reconsider its bid.

The transaction is expected to be agreed upon in the coming weeks and will require approval from Sabadell's shareholders. The Spanish financial regulator CNMV is reviewing whether the possible sale complies with the duty of passivity rules in the ongoing BBVA takeover offer. BBVA's chairman Carlos Torres criticized the timing of Sabadell's decision but stated that the sale would not derail BBVA's bid. The Spanish government is set to intervene in the BBVA takeover process, with a decision expected on June 24. Market analysts note that the sale of TSB, valued at over 2 billion euros, could provide Sabadell with capital to pursue other mergers in Spain or increase dividends to thwart the takeover. The potential sale adds complexity to European banking consolidation efforts and highlights the competitive dynamics among Spanish banks in the UK market.

Spain's second-largest bank, BBVA, has been advising its wealthy private banking clients since September 2024 to allocate between 3% and 7% of their portfolios to cryptocurrencies, specifically Bitcoin and Ethereum. This guidance is tailored according to clients' risk appetites and marks a shift from the bank's previous more cautious stance, which initially recommended 0% to 1-2% allocations. BBVA, a banking giant with approximately $40 billion in assets under management, is encouraging this diversification amid growing institutional confidence in cryptocurrencies as long-term asset classes. The move aligns with the full implementation of the European Union's Markets in Crypto-Assets (MiCA) regulation, which provides a clearer regulatory framework for crypto investments. Reuters and multiple financial news sources have confirmed BBVA's recommendation, highlighting the bank's strategic pivot towards embracing digital assets within its private banking services.

French banking group BPCE, the second-largest banking group in France and the fourth-largest in Europe, has agreed to acquire a 75% stake in Portugal's Novo Banco from U.S. private equity firm Lone Star Funds. The deal values Novo Banco at approximately €6.4 billion ($7.4 billion) and marks one of the largest bank acquisitions in the Eurozone in the past decade. BPCE's acquisition of Novo Banco, which was spun out of the collapsed Banco Espírito Santo in 2014 and purchased by Lone Star in 2017, is expected to establish Portugal as BPCE's second domestic market.

The transaction is seen as beneficial for the Portuguese state, which is set to recover nearly €2 billion previously injected into Novo Banco. The Portuguese Ministry of Finance confirmed the sale of an 11% stake in Novo Banco to BPCE and welcomed the outcome, which avoided a potential restructuring of the bank. The acquisition is part of a broader wave of banking consolidation in Southern Europe and is considered a key cross-border deal for the European banking sector. BPCE has no immediate plans to list Novo Banco on the stock market, and the deal was advised by CS’Associados. The transaction opens new avenues for BPCE in Portugal and Frankfurt, reflecting the group's ambition to expand its retail banking presence beyond France.

Mexico's economy is showing signs of stagnation and a potential slowdown in 2025 amid persistent inflation, lower growth, and declining remittances. Truck production in Mexico contracted by 12.9%, with 10,576 units manufactured, while auto parts production fell 8.2% in the first quarter due to tariffs. Industrial activity grew marginally by 0.1% in April compared to March but remained down 0.7% year-on-year. Despite these challenges, consumer spending in Mexico has demonstrated resilience.

Santander Mexico projects a near-zero GDP growth rate of 0.1% to 0.5% for 2025, with a more pronounced economic deceleration expected in the second half of the year due to ongoing uncertainty and delayed policy decisions. Banco de México (Banxico) officials, including Deputy Governor Jonathan Heath, have suggested pausing further interest rate cuts until inflation shows a clear downward trend, although a 50 basis point rate cut is still anticipated this month. Inflation is expected to approach 3.3% by year-end. Banxico also warned that a proposed 3.5% remittance tax, part of the "One Big Beautiful Bill," could discourage the use of regulated channels and negatively impact American families and small businesses by imposing surveillance and additional costs. The bank acknowledged that reduced remittance flows could affect retail banking deposits. Meanwhile, the International Monetary Fund forecasts Honduras's economy to grow 3.5% in 2025, slightly below its 3.6% expansion in 2024. The World Bank has also indicated that global economic growth will be lower than previously planned in 2025. Banxico Governor Victoria Rodríguez Ceja ruled out stagflation but highlighted ongoing economic weakness and persistent inflation, with expectations of improved economic performance starting next year.

The Spanish National Securities Market Commission (CNMV) is preparing to approve the prospectus for BBVA's takeover bid (OPA) for Sabadell as soon as the Spanish government issues its decision. The CNMV has maintained close communication with both BBVA and Sabadell since the beginning of the takeover process. Meanwhile, BBVA has ceased advertising its takeover bid and has simultaneously reduced its operating costs, becoming the only bank in Spain to do so amid the acquisition attempt. Additionally, the CNMV has authorized a partial self-takeover bid for shares of CIE Automotive.

Brazilian businessman Nelson Tanure has initiated discussions with key banks to support his bid for the petrochemical company Braskem, aiming to finalize a deal within the year. The bid involves collaboration with Novonor and seeks to increase the influence of state-controlled oil giant Petrobras in Braskem's operations, though Petrobras has stated it does not intend to re-nationalize the company. The contest for advisory mandates related to Braskem's restructuring has seen competition between financial firms Rothschild and Houlihan Lokey. With a potential change in control, Braskem is expected to undergo a debt restructuring. Meanwhile, the Brazilian government has acknowledged the possibility of leveraging Petrobras as a tool to increase revenue, amid concerns that government spending is impacting major firms including Petrobras, Vale, and Ambev.

Nadia Calviño, representing the European Investment Bank (EIB), has advocated for cross-border bank mergers within the European Union, referencing the BBVA takeover bid for Sabadell as context. She supports expanding the EIB's financing for the European defense industry, emphasizing the need to counter international movements by non-democratic regimes threatening liberal democracy. The EIB announced plans to allocate €3 billion in defense funds through partnerships with major European banks, including Deutsche Bank, to enhance the continent's security capabilities. Additionally, Calviño revealed the EIB will finance an electrical interconnection project between France and Spain, aiming to integrate the Iberian Peninsula into the broader European energy grid. Separately, an investigation highlighted that the European Defence Fund has provided millions in funding to an Israeli-owned drone manufacturer.

The Spanish National Court has issued a national arrest warrant for Khadem Abdulla Butti Al Qubaisi, former president of Cepsa—now Moeve—over alleged money laundering and tax fraud tied to the 2016 sale of Madrid's Torre Foster, also known as Torre Cepsa.

Judge José Luis Calama is investigating Al Qubaisi for laundering approximately 100 million euros and for failing to pay taxes on the gains from the transaction. The court alleges that Al Qubaisi used a network of shell companies, including Muscari Property BV and Muscari Development BV, created with the assistance of Edmond Rothschild bank, to conceal the illicit origin of the funds and evade Spanish tax obligations.

Read more

BBVA's takeover bid for Banco Sabadell has become a focal point in the Spanish banking sector, with BBVA aiming to expand its presence in the small and medium-sized enterprise (SME) segment, where Sabadell has a strong commercial foothold. The Spanish National Commission on Markets and Competition (CNMC) has released a report that challenges the Spanish Government's attempts to block the takeover, stating that Sabadell is not indispensable for SMEs, though there are risks for individual mortgage holders, particularly in Catalonia. Sabadell has estimated a potential €21.5 billion decline in credit availability to SMEs post-merger and has requested an eight-year safeguard period. Competing banks consider BBVA's proposed measures sufficient to mitigate possible credit reductions.

The International Monetary Fund (IMF) made a cryptic reference to the takeover in its annual report on Spain. Banco Sabadell's CEO, Josep Oliu, has expressed hope that the Government will consider the adverse effects of the takeover. Meanwhile, Spanish banking officials have acknowledged that fintech companies are not a significant competitive threat in this context. European Investment Bank (EIB) Vice President Nadia Calviño has endorsed cross-border bank mergers within the EU, referencing the BBVA-Sabadell deal. Separately, Banco Sabadell's private banking division has surpassed €66 billion in business volume, and its Mexican subsidiary plans to continue expanding market share under Albert Figueras. Additionally, CaixaBank and French Natixis have made bids for Novo Banco, with the Portuguese Government signaling potential obstacles to CaixaBank's offer and indicating that unemployment subsidies would not be paid in a merger between Novo Banco and BPI if it proceeds.

Voit Mexico has unveiled Aereus, the official match ball for the Liga MX Apertura 2025 tournament. The new ball features advanced technologies designed to enhance player performance and durability on the field. The Liga BBVA MX and Voit Mexico jointly presented the ball, which has been praised for its high quality and innovative design. The Aereus ball is expected to be used throughout the Apertura 2025 season, marking a technological upgrade for the league's official game equipment.

BBVA's takeover bid (OPA) for Banco Sabadell has encountered multiple legal and political challenges in Spain. BBVA sought protection from the European Commission against government intervention in the offer, which included a limit of 1.5 billion euros on the bid increase. The Spanish National Court (Audiencia Nacional) rejected requests to suspend the government's use of a public consultation process related to the OPA. Banco Sabadell has increased its treasury shares above 3.5% for the first time since 2013 to defend against the bid.

Sabadell's CEO, César González-Bueno, argues that there is no room for mergers among major Spanish banks like BBVA, Santander, or Caixa due to public interest concerns, emphasizing that the interest to be considered goes beyond solvency and competition. Political figures including former presidents Artur Mas, Pere Aragonès, and Ximo Puig, along with five former regional economy ministers from Catalonia and Valencia, have opposed the takeover, describing it as unjustified and against public interest. Yolanda Díaz, a prominent political leader, has also voiced strong opposition, noting that even the Church is against the OPA. The Catalan Parliament has formally requested the Spanish government to block the bid. The government is conducting a detailed analysis of the takeover, which remains under consideration by the Council of Ministers. Meanwhile, Banco Sabadell has proposed shareholder returns of 9% amid the takeover attempt. The PSOE party has aligned with ERC and Junts to seek banking licenses for the Catalan Institute of Finance (ICF) as a strategy to undermine the BBVA bid. The Spanish Competition Authority concluded that Sabadell is not essential for the SME sector. Additionally, Citi has reiterated a 'buy' recommendation for all Spanish banks except Sabadell and Unicaja, reflecting market skepticism about Sabadell's position amid the takeover attempt.

The Spanish People's Party (PP) has escalated its criticism of Prime Minister Pedro Sánchez, labeling his government as corrupt and mafioso amid discussions of a potential motion of no confidence. Despite acknowledging there are ample reasons for such a motion, the PP admits it currently lacks sufficient parliamentary support to proceed. PP leader Alberto Núñez Feijóo emphasized that the party's 2025 congress aims to address Spain's broader issues, contrasting it with the 2022 congress focused on internal party matters. Meanwhile, the government, represented by Vice President María Jesús Montero, has dismissed the notion of an alternative to the current progressive administration and criticized the PP for engaging in persistent mudslinging.

Regional leaders from the PP, including Isabel Díaz Ayuso, José Luis Martínez-Almeida, and Feijóo, have united in public events, such as Ayuso's mid-term celebration in Madrid's Parque Berlín, which featured music and community engagement. The PP continues to use the term "mafioso" to describe the government, coinciding with the seventh anniversary of the motion of no confidence that brought Sánchez to power. Additionally, controversies have emerged involving Ayuso's administration, including the hiring of Captain Bonilla and alleged connections to former minister Rafael Catalá in a hydrocarbons scandal, as well as ties to Alejandro Agag, son-in-law of former Prime Minister José María Aznar. The political discourse remains highly charged, with PSOE figures like Óscar and Patxi López responding to PP accusations by highlighting reciprocal criticisms.