The Miami-based branch of Spain’s Banco Sabadell S.A. announced a sector-shaking merger Wednesday with plans to buy a large rival and absorb the operations of a previously independent affiliate.
In a statement, Sabadell United Bank said it was acquiring the operations of Doral-based JGB Bank. Although the bank did not disclose terms of the transaction, France’s EFE news service said it was worth $56 million. JGB Bank, founded in 1957, is owned by Colombian billionaire Jaime Gilinski, who also happens to be parent Banco Sabadell’s largest shareholder. The transaction consolidates Gilinski’s holdings, the statement noted.
Sabadell United also said it had completed absorbing the private banking operations of the Lloyds Bank, a sister institution purchased by Banco Sabadell earlier in 2013.
As a result of the transactions, Sabadell United said it expects to have 31 locations, 40,000 clients and $8 billion in what the bank termed “business volume.” JGB has eight branches.
As of the most recent report, Sabadell United had $3.77 billion in assets and $2.34 billion in loans. JGB Bank has $530 million in assets, Sabadell United’s statement said. The completion of the Lloyds merger for its part adds $900 million in assets to Sabadell United’s balance sheet.
Sabadell United did not indicate if any of the merger action would result in branch closings or layoffs.
The transaction involving the merger of JGB Bank into Sabadell United is expected to close in the first half of 2014, assuming it is greenlighted by state banking regulators.