Caixa, Bankia Form Spain’s Biggest Bank in $4.5 Billion Deal
- Goirigolzarri to be executive chairman, Gortazar as CEO
- Combination adds to new momentum in European finance M&A
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CaixaBank SA agreed to buy Bankia SA to create Spain’s largest lender as European banks start looking at takeovers and mergers to confront weak profitability and stiff competition.
The deal values Bankia at about 3.8 billion euros ($4.5 billion) and the joint bank will deliver combined annual cost cuts and increased revenue of about 1.1 billion euros, Caixabank said on Friday. Bankia investors will get a premium of about 20% to the bank’s closing price on Sept. 3, the last before a potential deal was reported.