Aegon N V (EU:AGN)
Historical Stock Chart
6 Months : From May 2019 to Nov 2019
By Patrick Costello
Banco Santander SA (SAN.MC) said Monday that it has reached an agreement to terminate Banco Popular Espanol SA's agreement with Allianz SE (ALV.XE) for the exclusive distribution of certain products.
As part of the agreement, Santander Group will pay 936.5 million euros ($1.06 billion) for Banco Santander to acquire Allianz's 60% stake in Allianz Popular and to terminate the agreement for exclusive distribution of certain non-life insurance products through the Banco Popular network. The agreement also covers non-insurance products, collective investment institutions and pension plans operated through the Banco Popular network.
Banco Santander expects the agreement will be "slightly accretive" in earnings per share and achieve and return on invested capital above 10%. It should have an impact of roughly minus 0.08% on the group's fully loaded common equity Tier 1 capital, the bank said.
The Spanish banking group said it expects Aegon NV (AGN.AE), its insurance partner in Spain, to acquire 51% of AP Life's life-risk insurance business and 51% of the future non-life insurance business coming from the Banco Popular network and not transferred to the insurer Mapfre (MAP.MC) following completion.
Mapfre will also acquire 50.01% of the motor insurance, multi-risk business, multi-risk SMEs and civil liability insurance for enterprises businesses in the entire Banco Santander network in Spain under the agreement. Mapfre will subsequently become Banco Santander's future insurance partner in these business lines, it added.
The agreement is expected to be completed in the first quarter of 2020 and is subject to regulatory approval, Banco Santander said.
Write to Patrick Costello at email@example.com.
(END) Dow Jones Newswires
June 24, 2019 03:19 ET (07:19 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.