Banco Santander CEO Javier Marín said the partnership will enable Santander Asset Management (SAM) to integrate its businesses, while assisting the bank to boost its relationship with clients and address their investment needs.
SAM CEO Juan Alcaraz added, "This transaction will give Santander Asset Management a broader international profile and provide excellent opportunities for growth."
Based on the agreement, both acquirers will jointly hold a 50% stake in a holding company that will combine SAM’s eleven asset management companies in the nations in which it has operations.
The sale will generate a net capital gain of €700m ($914m) for the Spanish lender, offering the required capital and resources to boost its asset management business outside Europe and Latin America.
Expected to conclude by the end of 2013, the transaction will enable Banco Santander to leverage the wider, enhanced range of products and services and to provide the same to its customers.
The products managed by SAM will be distributed by the bank in the countries where it has a retail network, while SAM will explore new markets globally for the marketing of its products and services.
Established in 1857, Banco Santander had €1.388 trillion in managed funds, 102 million customers, 14,392 branches and 187,000 staff by the end of 2012.
