| Spanish Santander to buy 3 billion third largest bank in Poland |
| Posted on September 13, 2010, 12:30 amAuthor : banking |
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| The change of attitude acquisition of Spanish bank, which now prefers to expand into emerging markets in the context of the economic developments in Western Europe are anemic.Santander won the bid for Package 70% of Bank Zachodni in front of the famous European rivals, including BNP Paribas of France or PKO, Poland's largest bank.Allied Irish Banks was forced to sell stake amid the conditions imposed by the iralndez as part of financial aid offered.The acquisition is the third of its kind that Santander announced in recent weeks, thus showing that Spanish banking institution is trying to balance their assets.So last month, Santander has bought 318 of Royal Bank of Scotland branches, after British bank was forced to sell to reduce its market share in Britain.Before doing so however, the Spanish lender announced that it acquired a portfolio of auto loans worth 4.3 billion British bank HSBC, while in July and has strengthened its presence in the largest European market, Germany, buying 173 branches of Swedish bank SEB for $ 555 million.Poland the east 'Brazil'Santander has been involved in the acquisition of shareholding in Polish bank Bank Zachodni just to strengthen its presence in emerging markets, which alone can ensure the current economic growth.Moreover, Poland is one of the strongest economies in Central and Eastern Europe is seen by executives from Santander as having the potential to become "Brazil" to the region. Entry into this South American market through the acquisition of ABN Amro operations proved an inspired decision to Santander."Transaction (which Santander acquired 70% of Bank Zachodni - No) meets the criteria of Santander in strategic procurement and support our geographic diversification," said Emilio ankle, executive director of the Iberian bank.Moreover, Santander would submit other acţionaril of Bank Zachodni an offer that the creditor to take full control over Poland, and will later sell a minority stake to private equity fund Apex Partners.In addition, Santander will buy Allied Irish Banks holding the asset management division of Bank Zachodni for $ 150 million.Money and expectationsSantander is a bet on Poland and the sustained growth that we expect to see in this country compared with other regions.The acquisition is costing enough money in order to the fact that Santander will pay for shares in Bank Zachodni 2.8 times more than their book value. Iberian creditor expects the acquisition to bring profit in 12 months and generate ROI of 11% in the third year after completion of the acquisition.Santander has also voiced interest and other assets that Allied Irish Bank will put up for sale, including a minority stake in M & T, an American bank with regional operations.Bank Zachodni, briefly zachodni * Bank Zachodni Polish is the third largest lender in terms of market value. * Has a total of 518 branches and is the fifth lender in Poland in terms of assets (13.2 billion euros at end 2009). * He entered the majors' largest Polish banks in 2001 after it merged with Wielkopolski Bank loan, while the Allied Irish Banks had majority ownership in both banks. * In 2009, recorded a net profit of around 250 million. Euro. |
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