Major Spanish savings banks mull merger

Source: Xinhua| 2020-09-04 22:39:45|Editor: huaxia

MADRID, Sept. 4 (Xinhua) -- Two of Spain's most important savings banks, Bankia and CaixaBank, are considering a merger that would create the biggest bank in Spain if successful.

The plan was confirmed in a statement to the Spanish National Securities Market Commission (CNMV) late Thursday.

CaixaBank currently has 4,460 offices and 35,600 employees in Spain, while Bankia has 2,250 offices and around 16,000 employees. A fusion would create an entity with assets worth around 650 billion euros (766.5 billion U.S. dollars).

The Chief Executive Officer (CEO) of Bankia, Jose Sevilla, in July commented while presenting his institution's results that there was "some incentive for mergers ...We will see in the coming months."

A merger would need the approval of the Spanish government, which currently holds a 61 percent stake in Bankia after a 2012 bailout. If the merger moves forward, the government would hold a stake of around 14 percent in the newly created bank.

There was an attempt to merge the two banks in 2012 but the deal failed to come about. CaixaBank has expanded recently with the acquisition of Banco de Valencia, Caixa Girona and Banca Civica in 2018. Enditem