Spain's Caixa Bank and Bankia explore merger
By Alexander Bueso
Date: Friday 04 Sep 2020
(Sharecast News) - Two of Spain's largest savings banks are considering a tie-up that would lead to the creation of the largest lender in the country measured by loans, assets and deposits.
According to CaixaBank, the all-share transaction with rival Bankia would result in a lender with a combined market value of approximately €14bn.
Two persons familiar with the transaction that was being studied said an agreement might be forthcoming as soon as over the following week.
Shares of Valencia-based CaixaBank soared on the back of the news and were trading 14.24% higher to €2.07, while those of Madrid-based Bankia were climbing 26.7% to €1.31.
Bankia's current chairman, Jose Ignacio Goirigolzarri, would take over the same post at the new lender, while Caixabnk's Gonzalo Gortazar would take the helm as chief executive officer.
The Spanish government currently held a 61.8% stake in Bankia following its 2012 rescue in the wake of Spain's real estate market crash.
To take note of, the new lender would have a significant footprint Spain's two main economic regions, Madrid and Catalonia.
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