Sunday, August 7

Banco Santander raises the offer for the Mexican subsidiary by 10%

Santander Bank he raised his bet by 8.27 percent that he does not control in his Mexican subsidiary. The entity decided to improve the bet by 10 percent, to 26.5 pesos per title, a price that it believes is sufficient to convince small investors.

The disbursement in euros will exceed 600 million The bank also said it will not discount the dividend of 0.275 euros per share that was agreed on October 25. The entity’s work to gain full control of the Mexican division comes from 2019 when it increased its stake to 91.65 percent compared to the previous 74.96 percent.

Investors will be able to attend the takeover bid from November 3 to December 7, unless terms are extended, something that cannot be ruled out given the reluctance that minority shareholders have shown to date to dispose of the securities.

Increased presence in North America

Banco Santander thus shows its preference for the American continent, since there it has its two most profitable geographies, the United States and Brazil, and more specifically in North America after the USA surpassed Brazil as the most profitable country for the group.

The bank announced in July a takeover bid for 19.75 percent of the part that it does not control in Santander Consumer USA at $ 39 per share, an investment of around 2 billion euros. Ana Botín herself pointed out in an interview with INVERSIÓN the capacity of the United States to be the engine of the entity.

Thus, at the end of September, the profit for North America, (Mexico plus the US), grew more than double that achieved during the first nine months of 2020, up to 2,228 million euros. Mexico’s growth was more discreet, 1 percent more, to 602 million euros.

Instead, the united states shone. Profit almost quadrupled to 1,788 million euros, a record figure, once Botín has deployed a strategy for more profitable margins in the region.

Shopping happens

In this sense, bought the American broker Amhrest Pierpoint which added more than 1.3 billion institutional clients to the bank. The entity estimates that the purchase improves earnings per share by 1 percent with a return on invested capital over 11 percent in the third year.

All in all, Botín’s movements are already being noticed. Revenues increased 14 percent in the US From January to September, the interest margin improved by 7 percent and commissions did so by 8 percent.

“The work of these years, the solidity in the business lines and the strength of the balance sheet has allowed us to be in a unique position to benefit from current market conditions”Botín pointed out regarding the results presented in the US.