Santander and El Corte Inglés sign a strategic deal for the Financiera El Corte Inglés
• Santander’s consumer finance subsidiary is buying 51% of Financiera El Corte Inglés.
• The deal will allow Santander Consumer to consolidate its leading position in the European consumer finance market and will strengthen Financiera El Corte Inglés in the Spanish market.
Madrid - Banco Santander and El Corte Inglés have signed a strategic agreement, under which Santander Consumer Finance (SCF), the bank’s consumer finance subsidiary, will buy 51% of Financiera El Corte Inglés.
The transaction, which will require regulatory approval from the European Commission, the Bank of Spain and the Bank of Portugal, is expected to be completed in the first quarter of 2014. Due diligence values the Financiera El Corte Inglés at EUR 415 million, based on data at July 31, 2013.
Financiera El Corte Inglés, which operates in Spain and Portugal, will retain its name, brand and headquarters and will be managed jointly by El Corte Inglés and Santander Consumer Finance.
The agreement will allow Santander to strengthen its leading position in the European consumer finance market and will make its Spanish and Portuguese portfolios more diversified, thanks to the complementary nature of the Financiera El Corte Inglés.
El Corte Inglés will be able to reinforce its sales campaigns at all its stores and maintain its financial products and services as an added value for its customers.
There will be no change either in the Financiera El Corte Inglés’ workforce or in the terms of their contracts.
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