Acquisition

RNS Number : 3009N

Banco Santander S.A.

09 June 2010

 

MATERIAL FACT

Banco Santander ("Santander") hereby announces that it has reached agreement with Bank of America to acquire the 24.9% stake held by the latter in Grupo Financiero Santander ("Banco Santander Mexico") for an amount of 2,500 million dollars. Following this transaction, Santander's holding in Banco Santander Mexico will amount to 99.9%.

It is estimated that the transaction will have a positive impact of 1.3% on Santander's earnings per share from year one and a ROI of 15% from year three, based on market consensus estimates of Banco Santander Mexico's earnings. The estimated impact of the transaction on Santander's core capital is -31 basis points.

The transaction is subject to regulatory authorisation and is expected to be completed in the third quarter of 2010.

Banco Santander Mexico is the third largest financial institution in Mexico, with a market share of 14.8% in deposits and of 13.0% in loans. In 2003, Bank of America acquired this 24.9% stake from Santander for an amount of 1,600 million dollars.

Boadilla del Monte (Madrid), 9^th June 2010

 

END

 

 

ACQUKRNRRRANRRR