Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos
Custody & Clearing
Return to: BBR Home | Intermediaries | Custody & Clearing

Banco Santander to sell 50% custody business to Warburg Pincus-led group

BBR Staff Writer Published 20 June 2014

Spanish lender Banco Santander has signed a definitive agreement to sell a 50% stake in its current custody operations to a group led by the global private equity firm, Warburg Pincus.

Banco Santander

Under the terms of agreement, the group comprising Finesp Holdings and Singapore based investment company Temasek, will acquire half of Santander's custody operations in Spain, Mexico and Brazil.

The remaining 50% stake will continue to be owned by Santander, a custody provider in Spain, Brazil and Mexico, with €738bn in assets under custody.

Banco Santander chief executive officer Javier Marin said the alliance enables the bank to significantly increase its fund administration, depositary and custody business in markets.

"The transaction will enable us to increase and improve the products and services we offer our clients, with a higher value-added proposition adapted to their needs," Marin added.

Warburg Pincus managing director and European Financial Services Group head Dan Zilberman said the partnership with Banco Santander and the Santander Custody management team will enhance the company's focus on providing best-in-class products and services to its customers in Spain and Latin America.

"The custody market benefits from long term structural growth and we look forward to supporting management in accelerating the company's growth and service offering," Zilberman added.

Valuing Santander's Brazilian, Mexican and Spanish custody operations at €975m , the transaction is expected to generate a net capital gain of approximately €410m, which will be used by the Santander Group to strengthen the balance sheet.

Specifically, the company intends to focus on enhancing the products and services provided to its customers through greater investment in its technology platform and team.

Subject to legal and regulatory approvals, the transaction is expected to close during the fourth quarter of 2014.

Image: A Banco Santander office in Orange, Rio de Janeiro, Brazil. Photo: Eduardo P.