Caixabank acquires Bankia and creates the largest bank in Spain

Today I read a good new since the "troubled" banks are finding ways to overcome their problems. One of them is the following ...

Caixabank agreed to buy state-owned Bankia for 4.3 billion euros, creating the largest bank in Spain. Caixabank will pay 0.6845 euros for each share of Bankia, valuing it at 1.41 euros.

The merger will create the largest domestic bank based on assets, with a total market value of more than 16 billion euros, while there will be annual savings of 770 million euros, according to today's announcement of the banks.

The merger comes as the coronavirus crisis puts more pressure on European banks to join forces, amid rising "red" loans and record low interest rates.

Caixabank and Bankia did not say how many jobs would be lost or how many branches would be closed today, but the main CCOO union fears big cuts from the new “merged” bank, which will have more than 6,300 branches and more than 51,000 employees in Spain.

The deal has been described as a merger, but is in fact an acquisition by Caixabank, which has almost three times the market value of Bankia and is almost double its asset base.

Source,

https://www.theceo.gr/i-caixabank-exagorazi-ti-bankia-ke-dimiourgi-ti-megalyteri-trapeza-stin-ispania/

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