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Spain's Bankia to Take Over BMN as Bank Cleanup Accelerates

  • Acquisition values Banco Mare Nostrum at $924 million
  • Spain seeking to recoup costs of bailing out the two banks
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Bankia SA agreed to acquire Banco Mare Nostrum SA in an all-stock deal, allowing Spain to proceed with plans to sell its stake to recoup the costs of bailing out the lenders after the country’s property bust.

Bankia, Spain’s fourth-largest bank by market capitalization, will fund the deal by issuing new stock totaling 6.7 percent of its post-merger capital to the shareholders of Banco Mare Nostrum. The transaction values the unlisted BMN at 825 million euros ($924 million), or 0.41 times its book value, Bankia said in a statement Tuesday.