Caixabank and Bankia merger set to complete by the end of the year

Millions may have to wait as retirement age in UK could be raised. Image: Stock Photo, EWN

Caixabank and Bankia merger set to complete by the end of the year.

Caixabank and Bankia want to ensure that the merger of the two behemoths is finalised by the end of 2020.

Caixabank and Bankia are putting plans in place to accelerate the process of merging the two financial institutions with a goal of having the process completed by the end of the year.

The process would see the development of Spain’s first domestic bank, having been agreed by both the European Central Bank, and the Ministry of Economy

At the moment the appropriate due diligence is being carried out with a view to a full and frank exchange of company information and the exchange of each companies accounting documentation for full review by the other institution.

Once fully and pertinent due diligence is concluded, the two institutions will then have to agree on the process of how to divide shares and company organisation. This will be accompanied by robust future business plans and a new name for the merged entity.

Once all the above procedural elements have been attended to then both entities would have to get a “go ahead” from their respective boards of directors and subsequently from their shareholders.

After further legal agreements, some particular to the presence of Caixabank in Portugal and others in relation to the cross-over of branches in a number of towns and cities, the stage would be set for the finalisation of the merger.

After the merger process the Spanish government would also be able to claim back some of the aid it provided to rescue Bankia to the tune of €24,000m. To date the government has only manage to claim back €3,000m. Bankia’s future has been in question for a period of time.

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Chris Kidd

Chris has spent a colourful and varied international career in the Arts followed by a substantial career in Education. Having moved to Spain in 2019 for a different pace and quality of life with his fiancé, he has now taken up a new and exciting role working with the online department of Euro Weekly News. Share your story with us by emailing [email protected], by calling +34 951 38 61 61 or by messaging our Facebook page