UPDATE 1-Spanish builder FCC names new CEO

MADRID, Dec 18 (Reuters) - Spanish construction company FCC (FCC.MC: Quote, Profile, Research, Stock Buzz) named Baldomero Falcones as its new chief executive on Tuesday at the behest of the group's controlling shareholder, after the incumbent, Rafael Montes, resigned.

In a note to the stock exchange, Fomento de Construcciones y Contratas said Spanish billionaire Esther Koplowitz, who holds 53 percent of the company's capital, had proposed the appointment of Falcones.

Montes will become the company's non-executive chairman after 40 years at FCC.

Falcones, 61, founded private equity firm Magnum Industrial Partners and is also the chairman of Mastercard International Worldwide and the insurance unit of bank Santander (SAN.MC: Quote, Profile, Research, Stock Buzz). He is also a director at Spanish utility Fenosa (UNF.MC: Quote, Profile, Research, Stock Buzz), among his other posts.

Under Montes, who became CEO in 2004, FCC has diversified away from the Spanish market. Like other Spanish builders, it has sought to lower its exposure to the country's slowing economy, and in particular the housing market, as a nine-year growth spurt ends.

Through Monday, shares of the construction, services and cement firm were down 28 percent this year. They fell an additional 2 percent to 53.85 euros on Tuesday as Spain's blue-chip Ibex index .IBEX declined 0.2 percent.

Montes succeeds Marcelino Oreja as non-executive chairman. Oreja announced his intention to leave at FCC's annual general meeting. (Reporting by Ben Harding; editing by John Wallace)