MADRID — Spanish lenders Caixabank and Bankia on Thursday approved the terms of a proposed merger that will create Spain’s biggest domestic bank with around 600 billion euros ($710 billion) in assets, sources familiar with the matter said.
Caixabank and Bankia declined to comment.
The board meetings of both banks convened to discuss the merger ended on Thursday after approving the deal, one of the sources said without adding further details.
Negotiating teams from both banks had agreed to the merger in principle on Tuesday night and board members needed to approve it.
The deal has been described as a merger, but it is in effect a takeover by Caixabank as it is almost three times as big as Bankia in terms of market value and almost two times as big by assets.
($1 = 0.8450 euros) (Reporting by Jesús Aguado; editing by Sonya Dowsett and Ingrid Melander)