Caixabank and Bankia announce creation of biggest Spanish bank

Credit: REUTERS/ALBERT GEA

Spain's Caixabank on Friday announced the terms of the acquisition of state-owned lender Bankia in an all-in share deal that will create Spain's biggest domestic bank with around 600 billion euros($710.82 billion) in assets.

MADRID, Sept 18 (Reuters) - Spain's Caixabank CABK.MC on Friday announced the terms of the acquisition of state-owned lender Bankia BKIA.MC in an all-in share deal that will create Spain's biggest domestic bank with around 600 billion euros($710.82 billion) in assets.

The banks said they expected annual cost synergies of around 770 million euros and new annual revenues of around 290 million euros.

Under the terms of the deal, Caixabank will offer 0.6845 shares of its own for every share in Bankia.

($1 = 0.8441 euros)

(Reporting by Jesús Aguado Editing by Ingrid Melander)

((jesus.aguado@thomsonreuters.com; +34 91 585 8339; Reuters Messaging: Reuters Messaging: jesus.aguado.reuters.com@reuters.net))

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