Spain’s Santander to raise stake at Mexican business to 91.6%

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Spain’s Santander to raise stake at Mexican business to 91.6%

On late Friday, the 6th of September, Banco Santander SA, shortly called as the Santander Group, a Spanish multinational commercial bank and financial service provider headquartered on Madrid, said to the Spanish regulators that the Spanish lender would be increasing its stake in its Mexican subsidiary to 91.65 per cent from a prior 74.96 per cent following a public offering.

In point of fact, on last April, the Madrid-based multinational lender had attempted to takeover its Mexican subsidy at a deal worth of €2.6 billion aimed at bagging a great return from South America, nonetheless, not all of the shareholders agreed to the acquisition proposal, which in effect kept the agreement at purchase of 91.6 per cent stake for €1.7 billion, a Santander spokesman confirmed on Saturday, September 7th on condition of anonymity.

Besides, adding that the Spanish lender’s management board was satisfied at its public offer in the second-largest economy in South America, the Santander spokesman said on Saturday (Sept. 6th), “We are satisfied with the result of the public offer in Mexico, particularly given the market conditions in recent weeks.

We believe in Mexico, in the potential of its financial sector. We are confident that our greatest weight in Mexico can support a higher potential growth rate in the medium and long term. ” As beforementioned, under the financial terms of the new deal, Santander would not have 8.35 per cent stake of its Mexican subsidiary, while the deal was expected to come into being by September 17th, added the bank.