Caixabank and Bankia join forces to create the largest bank in Spain
According to the most recent account statements, both banks have more than 650,000 million euros of assets for the merger
Caixabank (MC: CABK) and Bankia (MC: BKIA) join forces to merge their assets into what will be the largest bank in number of assets in Spain, with the aim of gaining ground in the financial market based on efficiency and profitability in order to combat the strong impact generated by Covid-19.
“In the framework of the usual study of possible strategic operations” and in response to various information published by various media, Bankia “confirms contacts” with Caixabank, with the knowledge and authorization of the Board of Directors, to analyze a “possible opportunity for a merger operation between both entities,” as it was informed in the official statement.
One of the problems facing the financial sector in Spain are profitability failures and in view of them, the Vice President of the European Central Bank (ECB), Luis de Guindos, reiterated that the mergers are aimed at strengthening this important sector. They will also take advantage of the green light from the government that could recover part of the Bankia rescue aid.
According to information provided by direct sources, in the negotiation it was agreed that Ignacio Goirigolzarri of Bankia would be the new chairman while Gonzalo Cortázar of Caixabank the new CEO, which would mean the probable departure of the current chairman of Caixabank, Jordi Gual.
If the merger is successful, this bank would become the largest Spanish banking operator, and would also involve the integration of the reference banks in Madrid and Catalonia. According to the most recent account statements, both banks have more than 650,000 million euros of assets for the merger.
K. Villarroel
Source: es.investing
