Santander sells 50% of the current custody business in Mexico, Spain and Brazil

The operation will strengthen the operational platform

The agreement reinforces Santander's leadership in Spain and Latin America, and accelerates the service capacity and growth of the business.

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Banco Santander has reached a definitive agreement with FINESP Holdings II BV, subsidiary of Warburg Pincus, global firm of venture capital which focuses on growth investments, to reinforce Santander's leadership in the custody business.

 

Under the terms of the agreement, which is subject to the corresponding legal and regulatory approvals, the group, which includes Singapore-based investment company Temasek , will acquire a 50% stake in Santander's existing custody business in Spain, Mexico, and Brazil . The remaining 50% will remain with Santander. The transaction is expected to close in the fourth quarter of 2014.

 

Santander is a leading provider of custody services in Spain, Brazil , and Mexico , with €738.000 billion in assets under custody. The transaction values ​​Santander's custody business in these countries at €975 million and will generate a net capital gain for Santander of approximately €410 million, which will be used to strengthen its balance sheet.

 

 

The transaction values ​​the business at 975 million euros and will generate a net capital gain for Grupo Santander of 410 million euros.

 

 

The new company will focus on strengthening the products and services it provides to its clients by increasing investment in its technological platform and its team.

 

Banco Santander CEO Javier Marín stated that “with this alliance, Santander will significantly increase its custody, depositary, and fund management activities in markets where we are already leading providers. This transaction will allow us to improve and expand the products and services we offer our clients, with a higher value-added range tailored to their needs.”

 

For his part, Daniel Zilberman, Managing Director of Warburg Pincus and Head of Europe for its Financial Services Group, stated: “We are delighted to partner with Banco Santander and the team managing its custody business to reinforce the company’s objective of providing best-in-class products and services to its clients in Spain and Latin America . The custody market benefits from long-term structural growth, and we will support the management team in accelerating the company’s growth prospects and product offering.”