Banco Santander revealed intentions to make a cash offer of 24 Mexican pesos per share or €550 million to acquire the remaining 8.3% stake in its Mexican subsidiary Santander México.

According to the Spanish banking group, the offer is attractive to both its shareholders and that of Santander México.

The deal is also said to be beneficial for Banco Santander’s shareholders as it increases its growth profile, and also its capacity to generate capital.

Besides, it is in line with the Spanish bank’s strategy to utilize capital in high growth markets. Banco Santander said that Mexico is an important market for the group as it offers attractive long-term fundamentals.

The deal is anticipated to be wrapped up in Q2 or Q3 of this year.

Banco Santander stated: “Commencement of the offer and the offer itself will be subject to customary conditions, including regulatory authorizations, as well as the approval of the delisting of the Santander México shares from the Mexican Stock Exchange.”

  Banco Santander, Banking acquisition news, Banking industry news, Mexico, Santander México