2023-12-23 12:00:35
Abanca has announced an internal reorganization process that includes the merger by absorption of Targobank Spain and the subsidiary of this entity, Cemcice, as well as the absorption of the subsidiaries Bankoa Kartera, Bankoa Mediación, Abanca CorporationReal Estate Division, Jocai XXI, Torres del Boulevar and Corporación Empresarial de Representación Participativa, with the objective of “gaining efficiency.”
These are subsidiaries wholly owned directly or indirectly by Abanca, as stated in the merger project with Targobank Spain, an operation that occurs after the closing of the acquisition of the latter entity from Crédit Mutuel in October.
The merger project states that the current corporate structure of the Abanca Group is “the result of a model of organic and inorganic growth sustained over time in which successive acquisitions and integrations of businesses and financial entities have been taking place within its perimeter.”
He explains that this structure “has had to be adapted” based on the specific conditions offered by the owners of the businesses it has acquired, a circumstance that has determined that the Abanca Group “it has had to be restructured on several occasions to correct the deficiencies and duplicities that arose in the composition of its perimeter.”
He continues by pointing out that, as a consequence of the acquisition of Targobank, new companies have been incorporated into the perimeter of Abanca that increase its complexity, as well as various costs, in such a way that it is advisable to “gain” efficiency” in other areas of the organization.
Although both mergers are part of the same process of internal reorganization of the group, Abanca has separated the absorption of Targobank and Cemcice from the rest, since Targobank is a credit institution “subject to particular regulatory requirements” and its integration into the bank chaired by Juan Carlos Escotet will require a “specific” migration process. However, both operations will be approved and executed “in parallel and simultaneously.”
The synergies will come, mainly, from the optimization of expenses in the absorbed companies, expenses that “cease to occur due to their disappearance”, from the improvement of expenses due to the optimization of the cost of human and technological resources and from the optimization of the group’s treasury, motivated by the reduction in the cost associated with the minimum reserves to be maintained in the Bank of Spain, according to the merger text.
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