Spain’s Santander Bank turns around in the US

Spain’s Santander Bank is moving ahead with the group’s consolidation process. After the complete acquisition of the Mexican subsidiary, the financial institution is now working – once again – to secure full control of the American auto financier. In total, Santander takes about $2.5 billion for this.

Santander Consumer USA Holdings shareholders will receive $41.50 in cash per share, the institute announced Tuesday. Banco Santander owns 80.25 percent of the US bank through a subsidiary. The remaining 20 percent belonged to funds and small shareholders.

Santander Consumer USA Holdings specializes in auto loans. Recently, the volume of business has increased significantly and Santander has made significant profits: in the first quarter of this year, the profit of the American subsidiary increased tenfold to $616 million.

Santander turns around with a move in the United States. In 2014, the Spaniards put their car financier on the stock exchange, and now they are returning it. The deal will be more expensive than initially thought. When the plans were announced in early July, Santander offered $39 per share.

A spokesman for the bank explained that the reintegration would make running the business easier and would have a positive impact on the bank’s total income and capital structure. The transaction is expected to be completed by the end of October.

At the beginning of the year, the Spaniards repurchased the outstanding eight percent of their Mexican company, which cost about half a billion euros.