27th Mar 2008 10:33
Banco Santander S.A.27 March 2008 Santander and GE reach preliminary agreement The Bank will acquire GE Money's businesses in Germany, Finland and Austria andits card and auto financing business in the UK. GE Commercial Finance will acquire Interbanca, the Italian commercial bankassigned to Santander in ABN Amro's asset distribution. Madrid/London, March 27th, 2008 - Banco Santander and GE, through its GE Moneyand Commercial Finance business units, have reached a preliminary agreement onthe acquisition of certain businesses from each other valued at EUR 1 billion. Under the terms of the preliminary agreement, Banco Santander would acquire GEMoney's units in Germany, Finland and Austria, and its card and auto businessesin the UK, while, GE Commercial Finance would acquire Interbanca, the Italiancommercial bank assigned to Santander as part of the distribution of assetsfollowing the acquisition, together with Royal Bank of Scotland and Fortis, ofABN Amro. Banco Santander expects to integrate the GE Money units acquired, with totalassets of EUR 9 billion, into Santander Consumer Finance and Santander Cards.Interbanca would become part of GE Commercial Finance, providing GE with anenhanced capability to service mid-market banking businesses in Italy. "We believe this agreement is in the best interest of GE Money, our individualbusinesses, and GE's shareholders, and allows us to optimize our own portfoliofor continued growth and investment, while meeting GE's strategic objective ofredeploying assets within financial services," said William H. Cary, President &CEO of GE Money. "This transaction will enable Banco Santander to continue consolidatingSantander Consumer Finance as a European leader in consumer finance," said MagdaSalarich, Senior Executive Vice-President and head of the Santander ConsumerFinance Division. The transactions are subject to the completion of a definitive agreement andcertain regulatory approvals. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Banco SantanderGEC.L