Santander increases stake in Santander Mexico
by Richard Kilner
Story link: Santander increases stake in Santander Mexico
Banco Santander has announced that it has reached an agreement with Bank of America to acquire the 24.9% stake Bank of America presently holds in Santander Mexico, in a deal worth $2.5bn in cash.
After the transaction, which requires regulatory approval and is hoped to be complete within 90 days, is complete Santander will hold a 99.9% stake in Santander Mexico.
The stake was sold to Bank of America seven years ago, for $1.6bn.
Santander Mexico has been part of Grupo Santander for the last 13 years, and represents an opportunity for expansion in the group’s key target market of Mexico.
Banco Santander Chairman Emilio Botín has stated that the move emphasises the firm’s commitment to Mexico, enhancing Santander’s geographical diversity in a country with strong potential for growth.
As one of the few banks to emerge well from the financial crisis, Santander has grown over recent years both organically and through acquisitions, including Alliance & Leicester and Bradford & Bingley in the UK.