The combination of CaixaBank and Bankia will have total assets of more than €664bn and will cater to more than 20 million customers
CaixaBank has agreed to acquire Bankia in an all-stock deal worth €4.3bn in a move to create the largest bank in the Spanish domestic market.
As per the terms of the deal, each of Bankia’s shares will be exchanged for 0.6845 new CaixaBank’s ordinary shares.
The combined entity, which will operate as CaixaBank, will have a market capitalisation of more than €16bn.
Its total assets will be more than €664bn and will serve more than 20 million customers.
As per the parties, the combined entity will have a widespread and balanced territorial footprint and the resources and capacity to cope up with the challenges of the banking industry. Besides, the enlarged bank will enhance profitability for shareholders and continue to back the economic recovery of Spain, said the parties.
It will be the only bank to be operating in 290 of the 2,200 municipalities where it will have a footprint.
Bankia chairman José Ignacio Goirigolzarri said: “With this operation, we will become the leading Spanish bank at a time when it is more necessary than ever to create entities with a significant size, thus contributing to supporting the needs of families and companies, and to reinforcing the strength of the financial system.
“The new entity will continue to carry out the best corporate governance practices.”
Quick facts about CaixaBank and Bankia
Established in 2011, CaixaBank has 4,515 branches located across Spain and Portugal, as of March 2020. Of these, the bank has 3,846 retail branches in Spain.
Bankia, on the other hand, was formed nearly 10 years ago through the merger of seven regional savings banks.
It has more than 1,600 universal banking branches, more than 370 perimeter branches, 16 private banking branches, and also 125 agile branches.
In the combined entity, CaixaBank’s shareholders will initially hold a 74.2% stake, while the remaining 25.8% stake will be held by Bankia’s shareholders.
CriteriaCaixa, which is fully controlled by the “la Caixa” Banking Foundation, will continue as CaixaBank’s reference shareholder with a stake of 30%. Fund for Orderly Bank Restructuring (FROB) will have a 16.1% stake, while the remaining 54% stake in the combined entity will be held through shares listed on the stock market.
CaixaBank CEO Gonzalo Gortázar said: “The merger will allow us to face the challenges of the next 10 years with greater scale, financial strength and profitability, which will result in greater value for our shareholders, more opportunities for our employees, better service to our clients and a greater capacity to support Spain’s economic recovery.”
The merger is anticipated to be finalised during the first quarter of next year, subject to multiple regulatory approvals and other conditions.