MADRID, Sept. 18 (Xinhua) -- The Spanish savings banks CaixaBank and Bankia on Friday gave details of their merger agreement, which will create Spain's biggest savings bank.
CaixaBank will control 74.2 percent of the new group, which will keep the CaixaBank name, while Bankia will retain 25.8 percent.
In the statement confirming the merger, the banks explained "The current (coronavirus) pandemic, along with other structural challenges faced by eurozone banks, make the proposed CaixaBank and Bankia merger a strategic opportunity for both entities."
The statement said the move will allow the new bank to "reach a greater number of clients with an optimized cost structure and allow the two entities to jointly make digital transformation investments, which will allow making new investments in a more efficient manner."
It's calculated that the fusion will lead to annual savings of 770 million euros (913.3 million U.S. dollars) and increased revenues of around 290 million euros.
CaixaBank's Chief Executive Officer (CEO) Gonzalo Gortazar is to be named the CEO of the new bank, with Bankia Chairman Jose Ignacio Goirigolzarri becoming the chairman of the new entity. The merger has to be approved at meetings of the shareholders of both banks, which will probably be held in November.