Caixabank, Bankia approve merger to create Spain's biggest lender, sources say

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Caixabank and Bankia on Thursday approved the terms of a proposed merger that will create Spain's biggest domestic bank with around 600 billion euros ($710 billion) in assets, two sources familiar with the matter said.

on Thursday approved the terms of a proposed merger that will create Spain's biggest domestic bank with around 600 billion euros in assets, two sources familiar with the matter said.The board meetings of both banks convened to discuss the merger on Thursday ended with an approval of the deal, one of the sources said without adding further details. The two banks are due to give a press conference on Friday to reveal the financial details of the merger.

Negotiating teams from both banks had agreed to the merger in principle on Tuesday night and board members needed to approve it. Caixabank is considering offering a premium of between 15% and just above 20% over Bankia’s average share price in the last three months, valuing Bankia at around 4 billion euros , a source with direct knowledge of the deal said on Monday.

 

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