Spain’s government approves merger to create nation’s fifth largest bank

SPAIN’S government has given the green light to yet another bank merger this time between Unicaja Banco and Liberbank. 

The Ministry of Economics and Digital Transformation approved the deal which is expected to complete before the end of the July.

The terms will see Unicaja fully absorb its rival to create a bank with €110 billion in assets, creating the fifth largest bank in Spain in terms of assets.

The deal will reduce the number of banks in Spain to a mere 10, down from 55 prior to the 2008 economic crisis.

This latest consolidation of Spain’s banking sector follows the merger earlier this year between Bankia and Caixabank to create the largest domestic lender.

Under the merger terms the shareholders of the Malaga based Unicaja will hold 59.5% of the capital of the combined entity while those of Liberbank have a combined stake of 40.5%.

Malaga will be the new bank’s registered and operational headquarters and Manuel Azuaga, its executive chairman, while Manuel Menéndez will be the CEO.

The new bank will maintain a presence in 80% of the territory.

READ MORE:

• Brits living in Spain ‘furious’ that new quarantine exemption doesn’t apply to those vaccinated outside UK
• Hemingway, my dad and running the bulls of Pamplona
• La Linea votes to leave Andalucia and Cadiz to become free, autonomous city