Adds detail, comments from Mapfre and Caixabank
MADRID, December 29 (Reuters) – Spanish insurer Mapfre CARD.MC said on Wednesday that he had sold his stake in Bankia’s insurance business to Caixabank CABK.MC in a 571 million euro ($645.12 million) deal, although he has entered into arbitration which could increase the value.
Caixabank, which took over Bankia in March, agreed to pay 324 million euros for Mapfre’s 51% stake in life insurer Bankia Vida, adding to the 49% it held.
It will also pay 247 million euros to end a non-life insurance distribution contract, the two companies said in separate documents to the Madrid stock exchange regulator.
The combined amount represents 110% of the value of the two companies as assessed by an independent adviser, but Mapfre said it has opened arbitration proceedings to demand that Caixabank pay 120% of the value.
“The parties will submit to arbitration proceedings additional compensation of up to 52 million euros,” Mapfre said in a statement.
Mapfre said the deal will generate a profit of 171 million euros which it will use to improve efficiency in Spain and Italy.
Caixabank did not expect any significant impact on its accounts in 2021 from the transaction, adding that the 49% stake in the life insurance business contributed €29 million in the nine months of 2021 under the control of Caixabank.
He said his $4.3 billion acquisition of Bankia was aimed at increasing profitability and reducing costs.
($1 = 0.8851 euros)
(Reporting by Inti Landauro; Editing by Nathan Allen and Barbara Lewis)
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