CaixaBank, a Spanish financial company, agreed to acquire Bankia, a Spanish bank for $5bn. The agreement consists of an exchange ratio of 0.6845 new CaixaBank ordinary shares for every Bankia share and includes a 20% premium over the exchange ratio at the closing of September 3. Spain, via state bailout-fund FROB, will hold 16.1% in the combined lender, having held 61.8% in Bankia previously. The operation will generate new forms of income following the renegotiation of agreements entered by Bankia in the insurance sector and thanks to the ability to offer a wider and better quality portfolio of products and services to a larger customer base. Over a period of five years, the combined entity is expected to progressively generate revenue synergies amounting to $342m annually. "With this operation, we will become the leading Spanish bank at a time when it is more necessary than ever to create entities with a significant size, thus contributing to supporting the needs of families and companies, and to reinforcing the strength of the financial system. The new entity will continue to carry out the best corporate governance practices," Jose Ignacio Goirigolzarri, Bankia Chairman. On December 1, 2020 Bankia shareholders approve merger with Caixabank. On March 23, 2021, Spanish regulator approves the merger.