9 April 2018 – El Mundo
On Monday, the European Commission authorised BBVA’s sale of 80% of its real estate business to a subsidiary of Cerberus Capital Management (Cerberus) after concluding that the deal would not represent any problems in terms of competition in the market given the “limited” overlap in terms of the activities of the two entities.
The bank chaired by Francisco González (pictured above) announced an agreement at the end of November by virtue of which it would transfer 80% of its real estate business to the US fund Cerberus for a price of approximately €4 billion.
Specifically, BBVA and Cerberus agreed to create a joint venture for the real estate business in Spain.
The real estate business referred to in this agreement comprises around 78,000 real estate assets with a gross book value of approximately €13 billion, as well as the assets and employees necessary for the management of the business. The whole business has been valued at approximately €5 billion.
The services of the EU’s Competition Authority examined the operation through the simplified procedure, which is reserved for less problematic cases.
In the words of the bank when the operation was announced, the agreement with Cerberus is an “opportunity” to take advantage of the experience of an industrial partner who is an expert in the management and sale of real estate assets and to benefit from the strong outlook of the Spanish economy.
Original story: El Mundo
Translation: Carmel Drake