MADRID: Spain’s Caixabank on Friday announced the terms of the acquisition of Bankia in an all-in share deal that values the state-owned lender at 4.3 billion euros ($5.09 billion) and creates Spain’s biggest domestic bank by assets.
The banks said they expected annual cost synergies of around 770 million euros and new annual revenues of around 290 million euros.
Under the terms of the deal, Caixabank will offer 0.6845 shares of its own for every share in Bankia.
The merger is expected to kick off another round of consolidation for Europe’s banks which are struggling to cope with record low interest rates and the economic downturn sparked by the COVID-19 pandemic. More deals are expected to follow in Spain.
($1 = 0.8441 euros)
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