Spain's Sabadell agrees to buy part of BMN for 350 millions euros
MADRID (Reuters) - Banco Sabadell (SABE.MC) said on Tuesday it had reached a deal to buy Banco Mare Nostrum's branch network and business for 350 million euros in two Spanish regions.
Under the deal, Sabadell will acquire 10.6 billion euros ($13.95 billion) in customer loans and 7.9 billion euros in deposits in the northern regions of Catalonia and Aragon.
Spain's fifth largest lender will also take over 461 BMN branches, increasing its customer base by 900,000 people.
"The difference between net assets and liabilities is expected to differ by around 350 million euros, which will be neutralized in cash," Sabadell said in a statement.
BMN, which was formed by the merger of four Spanish savings banks following the end of the country's housing boom in 2007, is expected to become the eighth financial lender to be taken over by the Spanish state.
The assets and liabilities Sabadell will acquire will exclude the parts of BMN's business that will be transferred to Spain's "bad bank".
The bad bank, a condition for Spain to receive up to 100 billion euros in European aid for crippled lenders, will take up to 90 billion euros of toxic real estate assets out of the banking system.
An independent audit of Spanish banks found BMN had capital needs of 2 billion euros.
($1 = 0.7598 euros)
(Reporting By Jesús Aguado; Editing by Julien Toyer and Fiona Ortiz)
- A top Federal Reserve official who is sometimes seen as a bellwether for U.S. monetary policy on Monday offered his voice to a growing contingent at the central bank that has argued for reducing the Fed's bond buying at a meeting next week.
SAN FRANCISCO - At Pinterest, the four-year-old online bulletin board service that is valued near $3.8 billion, some 70 percent of the users are female. But the company's board of directors is 100 percent male. | Video
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.