SPAIN Trends and Developments Contributed by: Ignacio Sanjurjo, Ignacio Echenagusia, Natalia Tévar and Javier Valdés, Deloitte Abogados y Asesores Tributarios, S.L.U.
The CNMC is expected to remain a decisive actor in 2026, particularly in strategic and highly regulated sectors. M&A Trends in Key Sectors in 2026 Banking During 2025, the banking sector showed strong finan - cial performance but a mixed M&A landscape. M&A activity exhibited higher deal value but lower volume, with the market mobilising more capital even as the total number of transactions fell, reflecting selective, larger deals and continued investor interest in finan - cial services. Major banks such as Santander and BBVA delivered record profits in 2025, with Santander posting its highest-ever annual profit and advancing strategic deals such as the Webster Financial acquisi - tion to expand in the US market. Meanwhile, BBVA’s attempt to acquire Banco Sabadell was rejected, and BBVA has publicly stated that it will pursue organic growth rather than further acquisitions. For 2026, expectations are positive. With anticipated stability in interest rates and ongoing digital transfor - mation, M&A is expected to remain a strategic lever for growth, particularly for institutions seeking scale or technological capabilities. Advisory rankings sug - gest more middle-market activity and cross-border interest. A new influencing factor is regulatory pressure and compliance costs tied to EU and domestic reforms. Stricter oversight, new capital buffer proposals and banking-specific taxes could increase operational burdens, potentially slowing consolidation among smaller banks and shaping future deal rationales. Defence In 2026, the M&A landscape in Spain’s defence sector is undergoing a profound transformation, reflecting a structural shift in national industrial policy and geopo - litical priorities. Following increased European secu - rity commitments and Spain’s pledge to raise defence spending towards NATO targets, the domestic mar - ket has become significantly more dynamic. Con - solidation, vertical integration and strategic alliances are reshaping the competitive environment, with the objective of creating scaled national champions capa - ble of competing at the European level.
At the centre of this consolidation wave is Indra, which has repositioned itself as the cornerstone of Spain’s defence industrial base. The company has acceler - ated its strategic pivot towards defence systems, land platforms and advanced technologies. One of the most closely watched developments has been the potential merger with Escribano Mechanical & Engi - neering, a move that would reinforce Indra’s manu - facturing depth and strengthen its control over key segments of the value chain. While discussions have generated governance and market scrutiny, they illus - trate the broader drive towards industrial scale and vertical integration. Another defining feature of the 2026 landscape is capital mobilisation. Institutional financing and pri - vate equity interest have intensified, supported by European funding instruments and a more favourable perception of defence assets among global investors. In parallel, new sector-focused investment vehicles are being raised to channel capital into aerospace, cybersecurity and dual-use technologies, further stim - ulating M&A activity among mid-sized firms and spe - cialised suppliers. In this context, new sector-focused investment vehicles are being raised. Overall, Spain’s defence M&A environment in 2026 is characterised by consolidation, financial sophis - tication and policy alignment. The combination of increased public expenditure, strategic corporate leadership and active capital markets is accelerat - ing the creation of a more integrated and competitive defence ecosystem, positioning Spain as an increas - ingly relevant player within Europe’s evolving security architecture. Energy In 2025, Spain became one of the leading countries in the EU in terms of renewable energy generation. How - ever, the year was marked by significant regulatory debate, and the second half of 2025 also evidenced a clear slowdown in traditional renewable technolo - gies – particularly solar and wind – after several years of sustained growth. At the same time, the saturation of electricity grids has emerged as one of the main challenges to be addressed. Consequently, 2026 will be a key year for
1226 CHAMBERS.COM
Powered by FlippingBook