Spanish bank Santander has rescued its smaller rival Banco Popular from the brink of collapse.
The deal has cost Santander 7bn euros (£6.1bn), which according to the BBC is around 2bn euros more than analysts had expected.
Banco Popular has been in financial trouble since the eurozone crisis of 2012.
It was described by the European Central Bank as “failing or likely to fail" due to dwindling cash reserves.
In London, Santander’s share price was down 2.12 per cent this morning on the news, at 495p per share.
laura.miller@ft.com
