Santander seeks full ownership of Mexican business with $2.9 billion deal

SANTANDER, Spain/MEXICO CITY - Santander has offered to take full control of its Mexican business through a 2.6 billion euro all-share deal as the Spanish bank chases potentially higher returns available from Latin America.The deal proposed on Friday, which was broadly welcomed by analysts but described as “oppressive” by a major investor, will unwind Santander’s listing of 25% of the bank on the Mexican stock exchange in 2012.

Earnings from Mexico are expected to rise to 10% of group profit, up from 8%, Botin said. Latin America as a whole accounts for 43% of the Spanish bank’s earnings. “The growth opportunity in Mexican banking services, the repair of their balance sheet, the appointment of a highly respected CEO, the efficiency measures of the bank, and the governance of the parent company – how ironic – were the underpinnings of our investment thesis.”

“The Mexican stock market is already shrinking, it’s already fairly illiquid, and this is another blow,” Fraser said.

RT : Santander seeks full ownership of Mexican business with $2.9 billion deal

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