Bankia, Spain’s fourth largest bank, has agreed purchase Banco Mare Nostrum (BMN) in a 7.8 for 1 share swap deal, valuing BMN at €825 million, reports euronews.com. When the housing bubble burst in 2008 the number of lenders in Spain fell from 55 to only 13, leading to a five year economic slump. Both Bankia and BMN were nationalized following the economic crisis in a bailout worth €24 billion; the state owns around 66% of Bankia and 65% of BMN.
Two of Spain’s state owned banks, Bankia and Banco Mare Nostrum (BMN), are currently considering merging together. The merger would take place in mid 2017 once an analysis of the operation is complete, Bankia's Chairman, Jose Ignacio Goirigolzarri, said last week.