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Bankia/Banco Mare Nostrum merger could happen in mid-2017, Bankia chairman says

BankiaSA Chairman José IgnacioGoirigolzarri said a potentialmerger between the bank and Banco Mare Nostrum SA could occur in the middle of 2017,subject to the conclusion of an analysis of the operation, Reuters reportedOct. 4.

That analysis is yet to start, Goirigolzarri told anaudience in Madrid.

Spanish bank restructuring fund FROB recently said itwould look into apossible merger between the two state-owned banks, as well as other options, ina bid to maximize the lenders' value and facilitate the repayment of public aidinjected into them.

If the merger does proceed, it could create a combinedentity with total assets of more than €240 billion, Reuters noted. The Spanishgovernment has pledged to exit Bankia by the end of 2017.