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9/4, 11:58 AM (Source: TeleTrader)
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CaixaBank+3.16%

2.28
Chart for: CAIXABANK, S.A.

BANKIA+3.07%

1.55
Chart for: BANKIA, S.A.

Bankia, CaixaBank in talks over €14B merger

Spanish bank Bankia has begun negotiations with CaixaBank over a possible €14 billion merger deal that would form the country's largest domestic lender with assets worth over €650 billion.

According to CaixaBank's statement filed with Madrid's stock exchange, the two companies are in talks over a merger which comes as a necessary move of consolidation amid the coronavirus crisis. If the agreement is reached, the new bank will become the largest domestic lender in Spain, with around 50,000 workers.

While the Spanish government owns a 60% stake in Bankia, the merger would also have to be approved by the state's bailout fund. In that case, Spain would posses around 14% stake in the new company.

Following the news, shares of both banks started to surge. Bankia's stocks jumped by 26.51% to sell for €1.31 per share at 11:46 am CET, while Caixabank's stocks concurrently soared 13.58% to go for €2.06 per share. The move consequently pushed European markets into gains.

Breaking the News / ND