Banco Santander S.A. Memorandum of understanding with Cr t Agricole (4550W)
April 17 2019 - 2:00AM
UK Regulatory
TIDMBNC
RNS Number : 4550W
Banco Santander S.A.
17 April 2019
Banco Santander, S.A. ("Santander"), in compliance with the
Securities Market legislation, hereby communicates the
following:
inside information
Santander has signed a memorandum of understanding with Crédit
Agricole S.A. ("CASA") with the purpose of combining CACEIS and its
subsidiaries (the "CACEIS Group"), which is wholly-owned by CASA,
with Santander Securities Services, S.A. and its subsidiaries (the
"S3 Group"), which is wholly-owned by Santander.
Both the CACEIS Group and the S3 Group provide depositary,
custody and related asset servicing services. The CACEIS Group is
present in France, Germany, Belgium, Canada, Hong Kong, Ireland,
Italy, Luxembourg, the Netherlands, Switzerland and the United
Kingdom and the S3 Group is present in Spain, Brazil, Colombia and
Mexico.
Under the transaction Santander Group would contribute 100% of
the S3 Group's operations in Spain and 49.99% of its operations in
Latin America to CACEIS, in exchange for 30.5% of the share capital
and voting rights of CACEIS. The remaining 69.5% would continue to
be held by CASA. The Latin American operations of the S3 Group
would be jointly controlled by CACEIS and the Santander Group.
If the transaction is carried out, it is estimated that the
combination of the CACEIS Group and the S3 Group will result in a
capital gain of approximately EUR 700 million for Santander Group,
has a slightly positive impact (3 basis points) in core equity tier
1 and would be slightly accretive in ordinary earnings per share.
The Group expects to apply the referred capital gain to
extraordinary charges and provisions.
The signature of the final agreements requires prior
consultation with the relevant works councils at CASA and the
CACEIS Group and, if a final agreement is reached, the completion
of the transaction is expected to take place in 2019 and will be
subject to customary closing conditions, including to obtaining the
necessary regulatory approvals.
Boadilla del Monte (Madrid), 17 April 2019
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END
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