Banco MareNostrum (BMN), a mid-size Spanish bank created from a merger of Caja Murcia, Sa Nostra, Caja Granada and Caixa Penedés, is looking for another marriage of convenience because its time is short. If it doesn't find figure out a solution before June 11, there is a good chance that the Bank of Spain will deny BMN's plan for cleaning up toxic assets from its balance sheet. Without a merger partner, BMN be forced to ask for public aid.
Until several months ago, BMN had tried to endure the reform process alone. Because provision requirements increased when the latest reform was announced and BMN had already lost its opportunity to merge with Ibercaja, one of the healthiest savings banks that ultimately decided to merge with Liberbank, it is looking for another partner. BMN is looking at Banco de Valencia, but uncertainties about when Banco de Valencia would be up for sale undercuts any possibility of a merger for now.
In light of this situation, BMN leaders have been in contact with Popular, La Caixa and Unicaja. The problem is that these three banks are immersed in merger processes with other banks and don't need any more alliances. BMN can't afford to look for just any old firm and create a zombie bank, which would obscure its real status. The state might have to put up funds in order to prevent this from happening.
