Major shareholders Caixabank and Bankia green light their merger – sources

Major shareholders Caixabank and Bankia green light their merger - sources

MADRID (Reuters) – Major shareholders in Spanish banks Bankia and Caixabank have given the green light to the merger of the two lenders, two sources familiar with the matter told Reuters on Wednesday.

One source said the board meetings required to formally approve the deal would be called “very soon”, possibly as early as Thursday.

La Vanguardia newspaper also announced that meetings will be held on Thursday. The merger will create the largest bank in Spain with assets of about 600 billion euros ($ 711.96 billion).

Spain owns 61.8% of Bankia, while La Caixa Foundation owns 40% of Caixabank through its parent company Criteria.

Caixabank and the Economy Ministry declined to comment. Bankia was not immediately available for comment.

($ 1 = 0.8427 euro)

(Jesus Aguado, translated by Olga Devyatiarova. Editor Marina Bobrova)

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