Spain: Metro and Merlin join to create Real Estate heavyweight

Spanish Real Estate company Metrovacesa has received the approval of its shareholders to press ahead with its merger to local rival Merlín Properties. The operation would create Spain’s largest realtor, with over 9.3 billion euros in gross assets setting it among Europe’s real estate heavyweights.

Banco Santander, which owns a controlling stake in Metrovacesa (over 70%) will gain a 21.95% ownership in Merlin, as well as 46.21% of Testa Residencial (recently acquired by Merlín) as a result. The agreement includes penalties of up to 75 million euros should the deal be rejected by either company’s shareholders and board of directors.

The merger, which still requires approval from Spain’s competition authority, as well as both companies’ boards, would split Metrovacesa into three main units. Once completed, Merlin’s board will be made up of fifteen members, including nine independent company workers, along with three members named by Santander, one by rival bank BBVA (a principal shareholder in Merlín), and two executive advisors.

Full Content: La Semana

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