New Caja Merger to Go Ahead

 

Caja Espana-Duero Executives yesterday announced that the merger with Unicaja will go ahead.

The new entity will become the third largest savings bank, or 'Caja' in Spain, behind La Caixa and Bankia.

Each Caja had signed an agreement committing to 'considering' such a merger back in April of 2010, as the banking industry in Spain came under pressure in the light of bad loans taking their toll on the financial health of many Cajas, and the looming EU Stress tests.

A Joint statement was issued to the Spanish Stock Market Authority, reading : "The Board of Directors of Caja Espana-Duero ... unanimously approved the proposed integration with Unicaja,"

"The operation will require final approval of the general assemblies of two entities, along with the corresponding administrative authorisations."

The new merger would be 70% controlled by Unicaja, which is more than the 63% which was initially agreed earlier this year.

The Savings Bank will have it's head offices in Malaga, will Employ a total of 9'000 staff, operate from 1,700 branches and control assets of some 81 billion euros.