Caixabank completes fusion with Bankia to become largest financial institution in Spain

New bank will have nearly 20 million clients, €623.8 billion in assets and market capitalization of over €20.5 billion

Caixabank branch in Mataró (by Jordi Pujolar)
Caixabank branch in Mataró (by Jordi Pujolar) / ACN

ACN | Barcelona

March 26, 2021 03:40 PM

Caixabank completed the legal proceedings for the merger with Bankia this Friday and the registration of the deed has now been published in the commercial register.

Discussions about this merger were made public on September 4, 2020 and the merger was officially confirmed  by shareholders on December 3.

The new bank is now the largest financial institution in Spain, with around 20 million clients (10 million digital), €623.8 billion in assets and market capitalization of over €20.5 billion. Moreover, the new Caixabank will now hold the leading position in the market shares for deposits (24%), loans (26%) and long-term savings (29%). 

The union also means that they will now be present in 2,200 municipalities in Spain, in 299 of those becoming the only bank. With 6,727 offices combined across Spain, the new institution would far surpass Santander's 3,222 and BBVA's 2,592. 

Possible lay-offs

Additionally, combined, both companies employ over 50,000 people (35,000 at Caixabank and 15,000 at Bankia).

Yet, trade unions fear that the merger might lead to a reduction of staff. Banks and unions plan to meet after Easter. The Caixabank CEO, Gonzalo Gortázar, has said that voluntary redundancies will be prioritized and that dismissals “will not be traumatic” and has clarified that he wants the unions to have the first word.   


According to the final deal, Caixabank offered 0.6845 shares for every share in Bankia — which means that the former will hold 74.2% of the new company, while the latter will keep 25.8% of the conglomerate’s shares. This also includes a 20% premium on the equation of exchange made at the end of September 3 before the market was notified about conversations about the merger. It also includes a premium of 28% on average equations of exchange for the three months prior to the announcement.