6/24/2019, 9:44 AM (Source: TeleTrader)
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Santander to terminate Allianz deal for $1.06B

Spanish banking giant Banco Santander SA and German insurance company Allianz SE have reached an agreement to terminate their arrangement in Spain for approximately $1.06 billion, the latter announced in a press release on Monday.

The two companies terminated the agreement that was previously in place between Allianz and Banco Popular Espanol SA, which was bought by Santander for €1 in 2017, under which the former exclusively distributed certain non-life insurance products for the latter through a joint venture, Allianz Popular SL. The agreement also covered non-insurance products, collective investment institutions and pension plans operated through Banco Popular's network. Santander will pay Allianz €936.5 million for its 60% stake in Allianz Popular and for the termination of the distribution agreement.

Santander said that the termination agreement will have an impact of roughly minus 0.08% on the group's fully loaded common equity Tier 1 capital and that it will be "slightly accretive" in earnings per share and achieve and return on invested capital above 10%. The agreement is scheduled to be completed in the first quarter of next year subject to regulatory approvals.

Baha Breaking News (BBN) / DZ