BBVA authorisation is another step in regulatory process
Deal has low probability of impacting competition in Mexico, BBVA says

MADRID, Dec 23 Reuters BBVA said on Monday that Mexico39;s competition authority had given its approval for the Spanish bank to take indirect control of Sabadell39;s Mexican businesses.

BBVA had already secured clearance from the European Central Bank and authorities in several countries where its smaller Spanish bid target Sabadell has a presence, including Britain, the United States, France, Portugal and Morocco.

Spain39;s secondlargest bank makes around half of its overall profit in Mexico, where it said the competition authority concluded that the deal would have low probability of impacting the competition process and free economic activity.

Combining the two lenders would create a bank with more than 1 trillion euros 1.04 trillion in total assets and mark the latest consolidation move in Spain39;s banking industry.

BBVA is working on concessions after Spain39;s competition watchdog said that its Sabadell bid, initially valued at 12.28 billion euros 13 billion, must undergo a longer review.

Shares in BBVA have fallen around 15 since it announced its offer on April 29, now valuing it at around 10.25 billion euros.

The acquisition, which the Spanish government opposes, also requires authorisation from Spain39;s stock market supervisor.

Sabadell rejected the allshare offer in May, prompting BBVA to go hostile in a second attempt to…