Santander pays BOA £1.7bn for Mexican unit
Firm will acquire 24.9 per cent stake in Santander Mexico
Banco Santander will buy back its 24.9 per cent stake in
Santander Mexico after successfully negotiating a £1.7 billion deal
with Bank of America (BOA).
The firm will own 99.9 per cent of the Mexican unit following
the deal, which is expected to be completed within 90 days.
In 2003, Santander sold its stake to BOA for $1.6 billion (£1.1
billion), valuing the bank at $6.4 billion, while the current
transaction values the Mexican unit at $10 billion.
The move will expand the bank's presence in Mexico, a country
which is expected to experience vast economic growth in the
"This acquisition reinforces Santander's commitment to Mexico, a
country with a very positive outlook for growth, and furthers the
geographic diversification of our group," Santander chairman Emilio
Botin said in the statement.
Santander Mexico currently employs 12,400 employees across its
1,095 branches, serving 8.8 million customers.