Bankia seen as target for Spain’s top banks in upcoming M&A
Bankia [BME:BKIA], the Spanish bank that is 63.8%-owned by the state, is seen as a potential target for Spain’s top banks, Expansion reported. The banking industry in Spain is expected to undergo a new wave of mergers and acquisitions and Bankia is seen as one of the main protagonists, the Spanish-business daily said.
If it is bought by either Santander [BME:SAN] or BBVA [BME:BBVA], it would make them the undisputed leader in the Spanish financial industry, the report said. Bankia is particularly strong in Madrid and Valencia, where regional regulators would need to approve the deal, which would also need to be extended to all shareholders, the report continued.
Spain holds its majority stake in Bankia via Frob (the Fund for Orderly Bank Restructuring), which is expected to hold any sale of Bankia through a competitive auction, the report said.
The report also referred to another bank owned by Frob, Banco Mare Nostrum (BMN), which the government is required (under EU bailout regulations) to have sold by 2017. General elections later in the year may revive the government’s appetite to revive earlier plans (later shelved) to launch an initial public offering for the group, the report said.
Expansion