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.
Bankia target price
Fernando Rodríguez |Bankia’s stock market gains after the news that it will takeover BMN exceeded market consesus. But the future of Bankia’s stock price in the short-term will depend on the small print and the ratios of the merger.