Acquisition

RNS Number : 4988Q

Banco Santander S.A.

04 August 2010

 

MATERIAL FACT ANNOUNCEMENT

Grupo Santander announces that its affiliate Santander UK has reached an agreement to acquire the parts of the banking businesses of the Royal Bank of Scotland Group ("RBS") which are carried out through its RBS branches in England and Wales and its NatWest branches in Scotland.  The consideration for the acquisition is of £1,650 million (Euro 1,987 million approximately), subject to completion adjustments, which comprises £350 million (Euro 421 million approximately) of goodwill.

The acquisition includes 311 RBS branches in England and Wales and 7 NatWest branches in Scotland, 40 SME banking centres, more than 400 relationship managers, 4 corporate banking centres and 3 private banking centres. The transaction affects 1.8 million retail customers, around 244,000 SME customers and around 1,200 mid-corporate customers.

Upon completion, the acquisition will have an estimated impact of 40 basis points on the core capital of the Group. It is foreseen that the deal will be EPS accretive from the first year and result in a return on investment of approximately 15% by the end of year three.

Completion is expected at the end of 2011 or the beginning of 2012 and is subject to necessary approvals.

Boadilla del Monte (Madrid),  August 4, 2010

 

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