Research and Markets - CaixaBank Offer USD 1 Billion for BPI

18 Apr, 2016, 15:13 ET from Research and Markets

DUBLIN, April 19, 2016 /PRNewswire/ --

CaixaBank SA, Spain's third-largest lender, has made an offer to purchase the remaining part of Banco BPI SA it currently doesn't own for a price of USD 1 billion. The offer comes after both sides failed to reach an agreement regarding Banco's assets in Angola, and is the second takeover bid CaixaBank has made for BPI since 2015. Last year's EUR 1.1 billion bid was recalled after shareholders rejected a proposal to cease voting-rights limits. Industry performance for European banking is expected to remain muted in 2016, according to a report available from Research and Markets, suggesting that BPI may reject this offer too.

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CaixaBank owns 44% of BPI, and the proposed deal would result in annual cost savings of around EUR 83 million. Shareholders representing at least 50% of BPI's stock must approve the deal for it to go through. CaixaBank offered EUR 1.11 in cash per share for the remaining 66% of BPI, whose shares have stood at EUR 1.19 since April 8.   

A recent report found that the top three banking providers in Spain account for 51% of main current accounts, and the personal loans market is dominated by CaixaBank. The potential acquisition of BPI will result in an even greater market dominance for CaixaBank, should the deal be approved.

The deal could have an affect on related markets, such as IT spending. The global retail banking IT spending market is expected to grow at a CAGR of 4.66% during the 2014-2019 period, but CaixaBank's acquisition of BPI could result in a higher percentage, as it is likely that CaixaBank will want to invest in IT to save further costs.

For further information on this topic, and a full list of all related documentation, please visit the Retail Banking section at http://www.researchandmarkets.com/rm/NPJL.

Source: http://www.bloomberg.com/news/articles/2016-04-18/caixabank-launches-new-takeover-bid-for-bpi-for-eu1-6-billion

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