Spanish bank Bankia has been authorised to absorb Banco Mare Nostrum (BMN) after receiving European Central Bank (ECB) regulatory approvals.
The merger, whose talks started in March 2017, was subject to the approval of the Spanish Ministry of Economy, the General Directorate for Insurance and Pension Funds, the Bank of Spain, the National Markets and Competition Commission (CNMC) and the European Central Bank (ECB).
According the statement sent from Bankia to the Spanish National Securities Market Commission (CNMV), the merger by absorption implies the exchange of BMN shares for Bankia shares, which will take place after the deed is inscribed in the Mercantile Registry.
Bankia will extend its share capital by issuing 205,630,814 new ordinary shares with a nominal value of one euro per share and the exchange ratio will be one Bankia share for every 7.82987 shares of BMN.
As a result of the merger BMN will dissapear from 2 January 2018 and from the 11th is expected BMN shareholders to have at their disposal the Bankia shares delivered to them in the swap.
The integration of BMN into Bankia will also involve the closure of some 100 offices in 2018 and a reduction of banking staff through an Employment regulation file (ERE).