Caixabank evaluates the acquisition of Cetelem, a subsidiary of BNP.

(1) The Spanish newspaper Expansion reported on Thursday that Spain's Caixabank has hired Morgan Stanley to evaluate a potential acquisition of Cetelem. (2) Cetelem is the Spanish and Portuguese consumer credit business owned by BNP Paribas. (3) Caixabank is the largest bank in Spain by assets; if the deal is completed, it will strengthen its consumer credit business. (4) Spanish consumer credit has rebounded to levels not seen since before the global financial crisis, reflecting a banking sector shift away from mortgages toward higher-profit—but riskier—lending. (5) Caixabank, BNP Paribas, and Cetelem all declined to comment on the report. (6) Morgan Stanley representatives did not immediately respond to requests for comment. (7) According to Expansion, BNP Paribas will sell its Cetelem consumer finance business as part of a strategic realignment and invited potential bidders to submit non-binding offers this summer. (8) The newspaper reports the market values the deal at around 900 million to 1 billion euros, or about 1 billion US dollars. (9) Subsequent points of interest include whether Caixabank will make a formal offer, changes in deal valuation, and further strategic moves by BNP Paribas.