Bulletin: CaixaBank And Bankia's Potential Merger Could Kick Off A New Wave Of Consolidation

MADRID (S&P Global Ratings) Sept. 4, 2020--S&P Global Ratings said today that if CaixaBank S.A. (BBB+/Stable/A-2) and Bankia S.A. (BBB/Stable/A-2) were to merge, it could trigger a rush of banking consolidation in the Spanish banking system. The COVID-19 crisis highlighted the need for more consolidation, which has been on the agenda for a few years. As yet, it is too early to assess the impact of a potential merger. Both CaixaBank and Bankia have acknowledged that they are in merger talks, but have stated that they have not reached an agreement. The deal, if confirmed, would create the largest bank in Spain by far. Any merger would reinforce the banks' combined business dominance in certain regions--the Mediterranean coast, Balearic Islands,

...September 4, 2020 MADRID (S&P Global Ratings) Sept. 4, 2020--S&P Global Ratings said today that if CaixaBank S.A. (###+/Stable/A-2) and Bankia S.A. (###/Stable/A-2) were to merge, it could trigger a rush of banking consolidation in the Spanish banking system. The COVID-19 crisis highlighted the need for more consolidation, which has been on the agenda for a few years. As yet, it is too early to assess the impact of a potential merger. Both CaixaBank and Bankia have acknowledged that they are in merger talks, but have stated that they have not reached an agreement. The deal, if confirmed, would create the largest bank in Spain by far. Any merger would reinforce the banks' combined business dominance in certain regions--the Mediterranean coast, Balearic Islands, and Madrid--which could become an issue for the competition authorities to examine. If the banks merge, the consolidated entity would have domestic assets of about 600 billion (based on reported figures as of end-June 2020), market...

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