Caja Madrid, along with six smaller Spanish savings banks, will combine their units to set up a new joint company, Financial Times reports. Madrid-based Caja Madrid, Bancaja and savings banks from the Canaries and Rioja will add their retail assets and liabilities to the new bank, but will each manage business in their own areas.
The new group will function as a single entity and is expected to have around €340 billion of assets. Another banking group, Unnim, created by savings banks Caixa Manlleu, Caixa Sabadell and Caixa Terrassa, has also started talks to create a new bank, adds Reuters.
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