Spanish savings banks agree on merger

  • Three Spanish savings banks, Ibercaja, Liberbank and Caja3, have approved a merger in a bid to boost their weakened balance sheets.

    The merged bank would create the country's seventh biggest lender with $151 billion in assets.

    The deal comes after Bankia, itself the product of a merger, requested a $23.7 billion government bailout.

    After the merger, Ibercaja will account for 46.5 percent of the new bank, while Liberbank will get 45.5 percent and Caja3 will have 8 percent.