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Spain: Takeover of bailed-out bank a sign of optimism

 |  July 22, 2014

The takeover of a bailed-out bank in Spain is a sign of confidence in the recover of the nation’s economy, the acquirer said.

Banco Bilbao Vizcaya Argentina announced Tuesday that it will acquire Catalunya Banc in a $1.62 billion deal. During the announcement, BBVA executives said the takeover shows their optimism in Spain’s economic growth.

BBVA also predicted that Spain’s economy will grow above 2 percent next ear.

The takeover will also strengthen BBVA’s position in Spain with assets that exceed those of rival Caizabank and Banco Santander.

Following the collapse of Spain’s housing market, the government initiated its most expensive bailout of Catalunya; billions of dollars were spent on its preservation.

Full content: Wall Street Journal

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