Banesco Venezuela has bought Nova Cixa Galicia (NCG) Bank, one of three banks still in the hands of the Spanish government, for 1bn ($1.4bn).
Banesco, the biggest Venezuelan bank by deposits, saw off Spain’s three biggest lenders by assets, Santander, BBVA, Caixabank as well as US bidders JC Flowers and Guggenheim Partners, to buy the regional bank.
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Spain’s Fund for Orderly Bank Restructuring outlined its hopes for the sale before launching the auction, saying: "The Frob’s objective is to make back a large part of the money used to clean up the bank, with the lowest costs to current and future taxpayers."
The deal comes as a relief to the Spanish government, as it is only the first of the state-backed banks to have been sold successfully for more than a nominal price.
An attempt to auction off Catalunya Banc fell through earlier this year, meaning both Catalunya and Bankia have yet to be sold.
Another bailed-out bank, CAM, had to be sold for a nominal price of 1 to Banco Sabadell.
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By GlobalDataBanesco’s offer is thought to have been more attractive than those of its rivals because it promised to keep NCG as a separate regional banking group in Galicia, rather than absorbing it into Banesco.
