Mergers and Acquisitions (M&A) in Spain: Laws and Regulations
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Mergers and Acquisitions (M&A) in Spain: Laws and Regulations

Spain M&A structures and regulations in 2024

In the dynamic world of business, mergers and acquisitions (M&A) represent crucial strategies for growth and diversification. Spain, with its unique legal and regulatory landscape, offers a myriad of opportunities and challenges in the M&A arena. This article aims to provide a comprehensive overview of M&A structures and regulations in Spain, guiding professionals, entrepreneurs, and international corporations through the intricate process of executing successful mergers and acquisitions transactions in this vibrant market.

mergers and acquisition deal in spain

Mergers and Acquisitions (M&A) structures in Spain

Mergers and Acquisitions (M&A) in Spain encompass a range of activities where businesses combine or purchase assets to bolster growth, diversify portfolios, and enhance market reach.

These transactions typically manifest as mergers, where two companies amalgamate to form a new entity, or acquisitions, where one business purchases another. The Spanish market, known for its diverse economic landscape, has become a fertile ground for such activities, attracting both domestic and international investors. However, the M&A landscape in Spain is not immune to global economic fluctuations.

Factors such as fluctuating interest rates, inflationary pressures, and the lingering impacts of the pandemic have introduced a degree of caution and strategic recalibration in M&A activities in Spain as in many other european countries. Despite these challenges, Spain continues to offer a robust platform for M&A transactions, driven by its resilient economy and the adaptability of its business sector.

Are you looking for advice on executing an M&A transaction in Spain? Our team of expert lawyers specialised in spanish commercial laws can assist you with a tailored support and a high level of dedication and excellence.

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Spain M&A: numbers and trends

The Spanish M&A market has demonstrated remarkable resilience and dynamism in recent years. In terms of transaction volume and value, the market has seen a significant uptick, with the total value of M&A deals showing a steady increase.

Recent data highlights a surge in the number of transactions, underscoring Spain’s growing attractiveness as a destination for investment. This upward trend is particularly notable when compared to previous years, indicating a robust recovery and a positive outlook for the M&A sector in Spain. The increase in deal value not only reflects the scale of the transactions but also the strategic importance of the Spanish market in the global mergers and acquisitions landscape.

This growth trajectory is supported by Spain’s stable economic environment, a conducive regulatory framework, and the presence of diverse industries, making it an appealing market for both domestic and international investors.

Notable M&A deals in Spain

To highlight the upward trend of M&A in Spain, let’s look at the most important transactions of the past years:

  • Acquisition of Naturgy by IFM Investors: A significant transaction where the global infrastructure fund IFM Investors acquired a substantial stake in Naturgy, a leading Spanish energy company.
  • Merger of CaixaBank and Bankia: This merger created one of the largest banking institutions in Spain, marking a significant consolidation in the Spanish banking sector.
  • Telefonica’s sale of its tower division to American Towers: A major deal in the telecommunications sector, where Telefonica divested its tower division, enhancing the company’s financial position.
  • Acquisition of Lineas Aereas de Espana (Iberia) by International Airlines Group (IAG): A strategic move in the aviation industry, consolidating IAG’s position in the European market.
  • Amadeus IT Group‘s acquisition of TravelClick: This deal expanded Amadeus’ portfolio in the hospitality technology sector, reinforcing its global presence.

Mergers and Acquisitions deal structures in Spain

In Spain, M&A deal structures are primarily categorized into asset deals, share deals, and mergers.

  • Asset deals involve the acquisition of specific assets and liabilities of a company, allowing buyers to selectively acquire parts of a business. This structure is often preferred when targeting specific assets or operations, without taking on the entire company’s obligations.
  • Share deals, on the other hand, involve the purchase of a company’s shares, resulting in the transfer of ownership of the company as a whole, including all its assets, liabilities, and operations. This structure is typically used for acquiring control over a company and is common in transactions involving small to medium-sized enterprises or family-owned businesses.
  • Mergers in Spain follow a structured process where two or more companies combine to form a new entity or one company absorbs another. This can be a merger by acquisition, where one company absorbs another, or a merger by the creation of a new entity. Mergers are often pursued for synergies, market expansion, or diversification.

The mechanics of these acquisitions involve several stages, including due diligence, negotiation of terms, drafting of agreements, and obtaining necessary approvals from regulatory bodies. In the case of public companies, additional steps such as public tender offers and compliance with securities regulations are required. The target companies in these transactions vary widely, ranging from family-owned businesses and startups to large public corporations, each presenting unique opportunities and challenges in the M&A process in Spain.

M&A regulations in Spain

The legal framework for M&A and merger control in Spain is primarily governed by a set of laws and regulations that ensure the orderly conduct of these transactions. For asset deals, the Civil Code and the Commercial Code provide the foundational legal basis, addressing the rights and obligations of the parties involved. These transactions are often subject to specific sectoral regulations, especially when dealing with regulated industries.

Mergers in Spain are regulated under the Companies Act (Ley de Sociedades de Capital), which outlines the procedures for mergers, including the preparation of merger plans, shareholder approvals, and registration requirements. The Law on Structural Modifications of Commercial Companies (Ley de Modificaciones Estructurales) also plays a crucial role in governing the procedural aspects of mergers and acquisitions.

The regulatory oversight of M&A transactions in Spain is divided among several bodies, depending on the nature of the deal. The National Securities Market Commission (Comisión Nacional del Mercado de Valores, CNMV) is the primary regulatory body for transactions involving public companies, overseeing public tender offers and ensuring compliance with securities laws. For mergers and acquisitions involving financial institutions, the Bank of Spain and the European Central Bank may also have regulatory authority. Additionally, the Spanish Competition Authority (Comisión Nacional de los Mercados y la Competencia, CNMC) is responsible for reviewing transactions from an antitrust perspective, particularly those that may impact market competition. This multi-layered regulatory framework ensures that M&A transactions in Spain are conducted transparently, fairly, and in accordance with the law.

two entrepreneurs shake hands after a m&a in spain

Are there different regulations for different types of company?

In Spain, the regulatory landscape for M&A transactions does indeed vary based on the type of company involved (see here the different types of companies in Spain). For public companies, particularly those listed on stock exchanges, the regulations are more stringent. These companies are subject to the Securities Market Act and the regulations enforced by the CNMV, which include detailed disclosure requirements and procedures for public tender offers.

Private companies, on the other hand, are primarily governed by the Companies Act, which provides a more flexible regulatory framework compared to public companies. The transactions involving private companies are less encumbered by the stringent disclosure and procedural requirements that apply to public companies.
Additionally, specific types of companies, such as financial institutions, insurance companies, and entities in other regulated sectors, are subject to additional oversight by sector-specific regulatory bodies. For instance, mergers and acquisitions in the banking sector require approval from the Bank of Spain and, depending on the scale, the European Central Bank. Similarly, transactions involving insurance companies are overseen by the Directorate-General for Insurance and Pension Funds.

This differentiation in regulatory requirements ensures that the diverse nature of companies and the varying levels of public interest involved in their transactions are appropriately addressed, balancing the need for regulatory oversight with the flexibility required for business efficiency.

Are there different regulations for foreign investors?

In Spain, foreign investors engaging in M&A activities are generally subject to the same core legal and regulatory framework as domestic investors. However, there are specific regulations and considerations that apply uniquely to foreign investors. One key aspect is the foreign direct investment (FDI) regulation, which requires certain transactions involving foreign investors to undergo additional scrutiny and, in some cases, obtain prior authorization from the Spanish government. This is particularly relevant when the investments are in strategic sectors such as defense, telecommunications, energy, and transportation.
Additionally, investments from non-EU and non-European Free Trade Association countries may trigger specific regulatory reviews to ensure compliance with national security and public policy considerations. The Spanish government has the authority to review, approve, or deny such investments, especially in cases where they involve critical infrastructure, technologies, or can have an impact on public order and safety.
It’s also important for foreign investors to be aware of the tax implications and reporting requirements under Spanish law, which may differ from their home jurisdictions. Navigating these additional layers of regulation requires careful planning and often the assistance of legal and financial advisors who are well-versed in both Spanish and international law.

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Key regulations governing M&A in Spain

Key regulations in Spain that significantly influence M&A transactions include the Spanish Companies Act (Ley de Sociedades de Capital), which provides the legal framework for corporate governance and operations, crucial for structuring M&A deals.

The Securities Market Act (Ley del Mercado de Valores) is particularly relevant for transactions involving public companies, outlining the rules for public offerings, disclosures, and market conduct.

The Takeover Law (Ley de Opas) is another critical regulation, governing the process of public tender offers, mandatory bids, and defenses against hostile takeovers. This law ensures fair treatment of all shareholders and mandates detailed disclosure to provide transparency in transactions.

In addition, the Competition Law (Ley de Defensa de la Competencia) plays a vital role, as it requires companies to seek approval from the Spanish Competition Authority (CNMC) for deals that may affect market competition. This regulation can impact deal timelines and structure, especially in cases of large mergers that might lead to market dominance.

These regulations collectively ensure that M&A transactions are conducted fairly, transparently, and in a manner that protects shareholder interests and market integrity. Non-compliance can lead to significant legal and financial repercussions, including the nullification of deals, fines, and reputational damage. Therefore, understanding and adhering to these regulations is paramount for any entity engaging in M&A activities in Spain.

Advantages and disadvantages of M&A in Spain

Let’s now have a look at the pros and cons of carrying out mergers and acquisition deals in Spain.


  • Access to a Diverse Market: Spain’s varied economic sectors offer opportunities for growth and expansion in different industries.
  • Strategic Positioning: Spain serves as a gateway to European, Latin American, and North African markets, providing strategic advantages for global expansion.
  • Skilled Workforce: Availability of a highly skilled and multilingual workforce.
  • Supportive Legal Framework: Spain’s legal framework for M&A is well-developed, offering clarity and protection for investors.


  • Economic Fluctuations: The Spanish market can be susceptible to economic volatility, impacting the stability and predictability of investments.
  • Regulatory Complexity: Navigating the multi-layered regulatory environment can be challenging, especially for foreign investors.
  • Integration Challenges: Post-merger integration can be complex due to cultural and operational differences.
  • Competition: High competition in certain sectors can drive up acquisition costs and affect deal viability.

Spanish Mergers and Acquisitions in 2024

The Spanish M&A landscape in 2024 is shaped by a confluence of global economic trends and local market dynamics. Current valuations in the M&A market reflect cautious optimism, with companies being valued realistically to account for the global economic uncertainties and the post-pandemic recovery phase.

Looking ahead, several opportunities and trends are emerging. There is an increasing interest in technology and renewable energy sectors, driven by digital transformation and the global shift towards sustainable energy. This trend is likely to spur a wave of mergers and acquisition activities in these industries.

Additionally, the Spanish market is witnessing a growing trend of cross-border transactions, as international companies seek to leverage Spain’s strategic location and market potential. The real estate and hospitality sectors, traditionally strong in Spain, are also expected to rebound, offering attractive opportunities for M&A.
However, companies are also exercising due diligence and caution, particularly in light of potential regulatory changes and the evolving global economic landscape. The focus is on strategic, value-creating deals that align with long-term growth objectives and resilience building.

In summary, 2024 is poised to be a year of balanced growth in the Spanish mergers and acquisition sector, with a mix of challenges and opportunities, driven by strategic realignments and a focus on innovation and sustainability.

Future opportunities for M&A in Spain

Despite the challenges and increasing costs of funding, the Spanish M&A sector continues to offer numerous opportunities, underpinned by several strengths:

  • Resilient Sectors: Industries such as renewable energy, technology, and healthcare are showing resilience and growth potential, attracting M&A interest.
  • Innovation Hub: Spain’s growing reputation as a hub for innovation and technology startups presents opportunities for acquisitions and strategic investments.
  • International Gateway: Spain’s strategic location offers access to European, Latin American, and North African markets, making it an attractive destination for cross-border M&A or for starting a business in Spain.
  • Tourism and Real Estate: The tourism and real estate sectors, core to Spain’s economy, are expected to recover and grow, presenting opportunities for strategic M&A.
  • Government Incentives: Spain offers various incentives for foreign investment, particularly in technology, renewable energy, and infrastructure, which could drive M&A activities.
  • Skilled Workforce: A skilled and diverse workforce makes Spain an attractive destination for companies looking to expand their operations through M&A.

These factors collectively contribute to a robust M&A environment in Spain, offering promising opportunities for investors despite the current economic headwinds.

Lawants: Spain M&A Advisory Firm

Throughout this article, we have explored the dynamic and multifaceted world of Mergers and Acquisitions in Spain, highlighting the diverse structures, regulatory frameworks, and the evolving landscape of M&A in 2024. We’ve delved into the opportunities and challenges in the Spanish market, emphasizing its potential as a hub for innovation, strategic investments, and cross-border transactions.

At Lawants, we position ourselves as a key partner for foreign companies navigating the complexities of M&A in Spain. Our international outlook and deep understanding of the Spanish market set us apart. Our team of skilled lawyers and tax experts is adept at providing tailored, comprehensive advice to foreign entities looking to engage in M&A activities in Spain.

We offer a unique blend of local expertise and global perspective, ensuring that our clients’ investments are not only legally sound but also strategically aligned with their business objectives.
Whether it’s navigating the intricate legal landscape, understanding market trends, or identifying potential risks and opportunities, Lawants stands ready to guide and support foreign companies at every step of their M&A journey in Spain. Our commitment is to deliver exceptional service, ensuring a smooth and successful M&A process for our international clients.

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International M&a Transactions (Mergers and Acquisitions)

The acronym M&A is often used in the field of commercial law. This term stands for “Mergers and acquisitions” and […]

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