Caixabank buys Mapfre’s stake in Bankia’s insurer for 571 mln euros

MADRID, Dec 29 (Reuters) – Spanish insurer Mapfre said on Wednesday it unwound its business ties with Bankia’s insurance business via a 571 million euro ($645.12 million) deal with Caixabank, which took over Bankia earlier this year.

Caixabank has agreed to pay 324 million euros for Mapfre’s 51% stake in Bankia’s life insurer and 247 million euros for a contract to distribute non-life insurance, Mapfre said in a filing to the Madrid stock market regulator.

The combined amount represents 110% of the value of the two businesses, but Mapfre opened an arbitration process to demand Caixabank pays 120% of the value, the company said. ($1 = 0.8851 euros) (Reporting by Inti Landauro; Editing by Nathan Allen)

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