TELETRADER News
4/12/2019, 9:29 AM (Source: TeleTrader)
more TeleTrader news

Santander offers €2.5B for Mexican subsidiary

Spanish banking giant Banco Santander SA is looking to take full control of its Mexican branch in an all-stock deal worth around €2.5 billion, media reported on Friday.

The bank stated that it would offer a premium to buy out minority shareholders who own the remaining 25% of Santander Mexico that it does not currently own. If they agree to an exchange of their shares in the Mexico City-based lender for stock in the Spanish parent company, the offer would represent a premium of 14% on both banks' closing price. Santander Mexico contributed €760 million to the group's underlying profit in 2018, making it the fifth-best performer behind Brazil, Spain, the UK and the bank’s consumer finance business in the United States.

The news comes after Santander announced last week that it would trim costs by €1.2 billion to help it achieve its financial targets. The bank in particular said that it hoped the new three-year plan would help save over €270 million in its Latin American operations while reducing its cost-to-income ration to 45% from the current 47%.

Breaking the News / DZ