Sunday, March 20, 2011

The merger of the Basque savings banks has become an impasse

The economic outlook is in full swing. It is a process of conversion of Spanish savings banks. While Basque banks still have not reached an agreement. The merger of BBK, Caja Vital and Kutxa has entered a phase of impasse. After having the possibility of full integration, trading has been cooled without clarification. Although the 3 entities will soon have to choose the way to gain size and become more competitive.

While the rest of Spanish savings banks are moving at high speed due to the decree of recapitalization of financial institutions. Basque institutions have leading positions in credit. But they have not finished the process of merging.

It is the third attempt at integration that result swamped. Basque banks can not afford to sit back, because other banks are being strengthened.

At the moment nothing is known. In the coming weeks should reach a conclusion. Otherwise the negotiations could last until June. Although political representatives want an answer immediately. Socialists understand that the merger can not wait any more, because the financial market "is a tsunami that moves and / or you take size, muscle size, or if not, you're lost." They also say that if Kutxa continues blocking the merger of three, will become a fusion of two.

But if the process is too long, BBK has already warned he will not resign to resort to more purchases to gain size, a move that definitely dynamite the merger of three, as Kutxa have the same right to do the same.


No comments:

Post a Comment