THE merger between CaixaBank and Bankia will generate a return on investment of 200%, according to estimates by Alvarez & Marsal.

When the two organisations merged in September this year, the collaboration became the largest banking institution in Spain.

Together, the super-company now has assets totalling €664 billion.

But, despite the merger’s success, Alvarez & Marsal’s suggest that Sabadell, Unicaja and Liberbank are the most attractive due to their low price-books.

In fact, they predict the merger between Unicaja and Liberbank, which is taking place in the coming weeks, could produce even higher returns than CaixaBank and Bankia with 270% .

According to the firm’s report, “the opportunities for mergers and acquisitions must be evaluated based on the profitability provided to each of the entities; as well as the risk of integration, the net added value and any other qualitative, strategic assessment or politics.”

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