01:23 PM EDT, 06/17/2024 (MT Newswires) -- Banco Bilbao Vizcaya Argentaria ( BBVA ) Chair Carlos Torres Vila said Monday the bank aims to maintain Banco Sabadell's risk management model for small and medium companies if its proposed takeover bid is approved and completed.

BBVA will maintain the working capital lines of all small and medium enterprises for at least a year, except in cases of financial impairment, Torres Vila said at an event in Santander, Spain that was also attended by Spanish Economy Minister Carlos Cuerpo.

Cuerpo said his assessment of the proposed transaction has not changed and he remained worried about competition, especially in the SME segment, Bloomberg reported. While the Spanish government cannot block the takeover bid under Spanish law, it holds the decisive authority to approve the merger, Reuters reported.

Torres Vila said the Sabadell deal is not focused on cutting jobs. A key motivation for BBVA's takeover bid is Sabadell's strong position in the SME segment, he said. "Our view of the importance of SMEs is one of the reasons for the offer we presented to Banco Sabadell shareholders a little over a month ago."

Sabadell shareholders have yet to decide on BBVA's 12.23 billion euro ($13.1 billion) takeover bid.

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