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Spainآ’s biggest bank formed amid Caixabank, Bankia USD five bln merger

MADRID, Sept 18 (KUNA) -- Caixabank has clinched a deal worth USD five billion to buy state-owned Bankia, creating Spainآ’s largest domestic lender amid a string of mergers among European banks seeking to cushion the economic blow from the coronavirus pandemic.
The move sparks the biggest domestic bank in Spain in terms of assets, with a combined market value of around USD 343.3 million, generating annual cost savings of up to USD 911.6 million, according to a joint statement from the two companies.
The newly-formed bank could see its staff balloon up to more than 51,000 members, with some 6,727 branches across the country, added the statement.
Grappling with rising debts and record-low interest rates caused by the pandemic, many European banks have decided to merge as means of staying afloat. (end) hnd.nam