The exchange ratio for the integration is going to be 0.6845 new ordinary shares of CaixaBank for every Bankia share, as reported by the two companies in a statement to the National Securities Market Commission (CNMV) on Friday. As such, the former will initially have a 74.2% stake, while the latter will own the remaining 25.8%.
The merger between CaixaBank and Bankia (heirs to the former savings banks La Caixa and Cajamadrid, respectively) will give rise to the largest bank in the Spanish market, both in terms of asset volume and the branch network, but it will undoubtedly require very significant cost reductions. The closing of branches and early retirements, as well as the reviews of credit risk and the relationships with their servicers, will have a direct impact on the real estate market.
Read the full article in Spanish.