to create Spain's biggest domestic lender, transforming the nation's banking landscape.
The Spanish state is the largest shareholder in Bankia, but following the merger its 62% stake will drop to 16% in the new group.Leaders of both banks are confident the deal will be approved by regulators, allowing them to implement the merger by the end of the 1st quarter in 2021 with full integration by the year's end.
"The impact of COVID and its continued existence over the long term in an environment of clearly negative interest means the path we must follow for the next few years is one we must travel together," he said. Under terms of the deal, Bankia shareholders will hold 25.8% of the new entity while shareholders in CaixaBank, Spain's largest domestic bank, would hold 74.2%.