152
152
  • Transaction / Assets
    Santander Totta buys Banco Popular Portugal
  • Seller
    Banco Popular Spain
  • Buyer
    Santander Totta
  • € MM

Santander Totta Approves Purchase of Banco Popular Portugal

 

5 September 2017

Santander Totta has approved the acquisition of Banco Popular’s operations in Portugal, following Popular’s rescue in Spain and Santander’s acquisition of its Spanish operations

“Following the acquisition of Banco Popular Spain by Banco Santander, within the resolution measure approved by the Single Resolution Mechanism (…), and in the context of the integration of the Banco Popular group’s businesses into the Santander Group, today we approved several operations,” the bank led by Vieira Monteiro revealed in a statement to the Securities and Exchange Commission (CMVM) on Tuesday.

The most significant acquisition approved by the board of directors is the purchase of “100% of the share capital of Banco Popular Portugal” by Santander Totta. The statement did not disclose details of the amount of the transaction.

The statement to the market also included notice of Santander Totta‘s acquisition of 84% of the insurer Eurovida from Banco Popular Spain, as well as Totta Urbe’s acquisition of Consulteam Management Consultancy’s portfolio of assets.

According to the statement, the two banks’ boards of directors also approved the legal merger of Santander Totta and Banco Popular Portugal. In the merger, Santander Totta “will legally incorporate Banco Popular Portugal, including all of its assets and liabilities.” The acquisitions and the merger will now require the requisite approvals from regulators and supervisors to proceed.

On June 6, the European Central Bank (ECB) ruled that Spain’s Banco Popular was not viable and was likely to fail. Santander then agreed to buy Banco Popular for the symbolic price of one euro.

To facilitate the purchase, Banco Santander’s board of directors agreed to a capital increase of seven billion euros, to guarantee the capital and provisions necessary for Banco Popular to operate normally.

This operation will impact Portugal, where Santander owns Santander Totta. The current understanding is that Santander Totta will integrate the totality of Banco Popular Portugal’s operations, including its 1,000 employees.

On August 8, on the day the European Commission gave its final approval for Santander’s purchase of Banco Popular, an official source at Santander Totta informed Lusa that the bank would proceed with the formal procedures for the purchase of Popular Portugal, merging their operations and the two banking brands.

Original Story: Público – LUSA

Translation: Richard Turner