Acquisition

RNS Number : 5273S

Banco Santander S.A.

10 September 2010

 

MATERIAL FACT

Grupo Santander ("Santander") hereby announces that it has reached agreement with Allied Irish Banks ("AIB") to acquire 70.36% of the Polish institution Bank Zachodni WBK ("BZ WBK") for an amount of approximately 2.938 billion euros in cash. The purchase of BZ WBK will be implemented by means of a tender offer for 100% of the capital, in which AIB will necessarily tender its stake. Additionally, Santander will acquire AIB's 50% stake in the company BZ WBK Asset Management, for 150 million euros in cash.

The acquisition of the stakes held by AIB in BZ WBK and BZ WBK Asset Management will generate goodwill of approximately 2.0 billion euros for Santander and will have an estimated impact on the Group's core capital of approximately 40 basis points. It is estimated that the transaction will have a positive impact on earnings per share from the first year, and that the return on investment will be around11% at the end of the third year.

It is envisaged that the transaction will be completed in 2011, once the necessary regulatory authorizations and the approval of the general shareholders' meeting of AIB have been obtained.

Boadilla del Monte (Madrid), September 10, 2010

 

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