Should Banco Santander and BBVA watch out for this one? The absorption of Banca Cívica, approved on Monday by Caixabank’s board, will create the leading bank in the Spanish market, with assets of €342 billion, stock market capitalization in excess of €16 billion, 14 million customers and an average Spanish market share in deposits of 14.0%, in customer loans of 13.4% and in total assets of 10.5%. CaixaBank will become…
LONDON | The Spanish wind energy firm Gamesa announced Friday it will pursue an agreement with the Port of Leith for the set up of a major offshore manufacturing base in the UK. The project would include blade and nacelles plants, port logistics and operating and maintaining services. The company estimates that the new British manufacturing base could create about 800 new jobs, with an initial investment of about €150 million….
MADRID | YPF, the subsidiary in Argentina of Spanish oil company Repsol, will carry out last year’s dividend payment in shares in response to pressure from Cristina Fernández de Kirchner’s government. The republic’s authorities have vehemently expressed their desire for the corporation to increase investment activity in the country instead of distributing the cash to stockholders. The board approved this week the transfer of 1.057 billion pesos from reserve for…
For Spain’s Inditex, weathering the crisis isn’t near enough: the company seems ready for a full combat. Inditex board will submit a proposal to the annual general meeting of shareholders in July for payment of a dividend of €1.80 per share, an increase year on year of 12.5pc. This dividend will consist of a €0.9 per share interim dividend payable on 2 May 2012 and a €0.90 per share final…
NEW YORK | In allegedly the most expensive shopping street in the world, Zara inaugurated Wednesday its new flagship store. Fashionistas, entrepreneurs and journalists attended the Spanish clothing retailer debut, which is their US largest bet so far. The company bought the real estate property for $324 million and claims the store to be a totally new concept. Would it be worth the money? Hard to say, but the visit of…
NEW YORK | It is the latest mantra on Wall Street: US companies are sitting on a lot of cash, $1,2 trillion, and that’s only counting non-financial companies in the Standard & Poor’s 500, says the Association for the Financial Professionals. This is a record: up 70% from 2007 and 200% for the past 10 years. This huge war chest makes a lot of people wonder: what are they waiting for?…
Spain’s largest supermarket chain increased its turnover in 2011 to €17.831 billion, 8% up from 2010’s figures. The company, whose headquarters are in Valencia, brought some Mediterranean sun over the Spanish economy when it released this week its 2011 results. Mercadona’s productivity growth rate was 2%, earning a profit after tax of €474 million or 19% more than in 2010. Also, the supermarket has created 6,500 new permanent jobs in 2011,…
NEW YORK | “It’s the same Google experience that you’re used to, with the same controls,” said the company about its new privacy rules on Thursday. Really? Announced in January 24 and despite warnings from the EU earlier this week, Google’s highly controversial privacy changes took place on March 1st. European justice commissioner insisted they are in breach of European law. France’s regulator CNIL expressed its deep concern about the…
By Tania Suárez | The board of directors of Ibercaja and Caja 3 have agreed to initiate the merger process of their banking business, in order to develop a new bank. Last February the Spanish minister of Economy Luis de Guindos announced the outline of the financial reform. It has shaken the system and the public opinion, but it is now starting to reap the fruits. As the economist Juan Pedro…
NEW YORK | General Motors and PSA Peugeot Citroën’s strategic pact announced Wednesday is meant to help both automakers squeeze $2 billion a year at their struggling European operations. The Detroit giant will acquire a 7% stake in French automaker PSA as part of a broad alliance that will include sharing vehicle architectures and pool the purchase of components. They will also cooperate in such areas as logistics and transportation to…