Last Friday afternoon, Fluidra revealed its merger project with its US-based rival Zodiac, world leader in Premium products for swimming pools. The new company, which will keep the name Fluidra and will continue to trade on the Spanish market, will have a presence in 46 countries and a workforce of 5,500.
SPANISH SMALL & MID CAPS
Since it announced the sale of its concessions division in Mexico, its biggest source of earnings, OHL is expected to look for alliances to regain muscle. A merger with another European construction company could be a possibility.
Liberbank has signed a binding agreement to set up a company with Bain Capital Credit and Oceanwood. The aim will be to administer, develop and dispose of a portfolio of foreclosed property assets belonging to the LBK group.
This week Spanish pharmaceutical firm Almirall issued a profit-warning, citing the negative impact of its US business. The stock price has dropped 30% in two days.
Pablo Fernández | A company uses its accounts (balance sheet and profit and loss account) and its annual report to communicate its past peformance and its current situation. But are these accounts a real reflection of the company’s financial health? Abengoa is a case in point.
Fernando Rodríguez |Bankia’s integration of BMN has transformed the stock in the eyes of analysts and fund managers: the restructuring period is over and now it’s time for growth. If the execution of the merger avoids the limited risks which it would seem to involve, the macroeconomic scenario in Spain, and interest rates on the rise in Europe, should favour the bank’s business and boost Bankia’s share price, which has already heated up of its own accord.
Abengoa is trying to finalise the details which will allow it to go ahead with the sale of Atlantica Yield (Nasdaq:ABY) which manages electricity assets and has an approximate market value of $2.16 billion (around 1.93 billion euros). Abengoa has two options for closing the sale: Firstly, the direct handover of its 41% stake in ABY to the funds, including Brookfield, secondly placing blocks of its shares on the market.
The board of directors of Bankia and Banco Mare Nostrum (BMN) have approved the merger of the two lenders via a share exchange of 1 Bankia x 7,82. Furthermore, Bankia values BMN at 825 million euros. The deal is expected to be closed in December this year, and will give rise to Spain’s fourth largest bank, bigger than Sabadell.
Unicaja has announced it has received sufficient demand to cover its stock market listing, due on June 30, and expects to raise 875 million euros. The offers presented are not binding as no definite price has yet been obtained.
The IMF has forecast the global economy will grow 3.5% in 2017. Likewise, in the year to date, markets have acheived high growth rates. UBP’s analysts keep in mind small & mid caps as an investment option.