Integration business in Polan
Press Release
Santander and AIG to integrate their consumer finance businesses in Poland
-Santander will hold a 70% stake in the combined company and AIG the remaining 30%.
-The loan portfolio of the combined company will amount to EUR 3.5 billion.
-The resulting company will become one of the top players in the Polish consumer finance market.
Madrid, July 29, 2009 - Santander Consumer Finance and American International Group, Inc. (AIG) have agreed to combine their consumer finance businesses in Poland conducted through Santander Consumer Bank (Poland) S.A and AIG Bank Polska S.A, respectively. The transaction, which is pending regulatory approvals from the Polish Financial Supervision Commission and other appropriate regulatory authorities, will result in an exchange of shares, providing Santander with a 70% stake of the combined company and AIG the remaining 30%. Santander will also assume the management of the resulting company.
The companies are very complementary, enabling Santander Consumer Bank to take a significant leap in the consumer finance business in Poland. The combined company will become one of the top players in the Polish consumer finance market, and will leverage the product offerings of both AIG Bank Polska and Santander Consumer Bank. Santander Consumer Bank will contribute its strength and expertise in the auto financing business, where it has a 30% market share in new car financing. The combined company will benefit from AIG Bank Polska's leading position in segments such as personal loans, credit cards and deposits. The combined company will also be able to grow its positions by leveraging the strong distribution network that it is inheriting. The integrated company will have 250 branches.
The loan portfolio of the resulting company will amount to EUR 3.5 billion, while deposits will total EUR 750 million.
Banco Santander (SAN.MC, STD.N) is a retail and commercial bank, based in Spain. At the end of 2008, Santander was the largest bank in the euro zone by market capitalization and third in the world by profit. Founded in 1857, Santander had EUR 1,168 billion in managed funds at the end of 2008. Following the acquisition of Sovereign Bancorp. of the U.S. in January 2009, Santander has 90 million customers, more than 14,000 branches - more than any other international bank - and 170,000 employees. It is the largest financial group in Spain and Latin America, with leading positions in the United Kingdom and Portugal and a broad presence in Europe through its Santander Consumer Finance arm.
This information is provided by RNS
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