Popular to Buy Wells Fargo's Auto-Finance Business in Puerto Rico for $1.7 Billion
February 14 2018 - 04:57PM
Dow Jones News
By Bowdeya Tweh
Popular Inc. (BPOP) said Wednesday it will acquire Wells Fargo
& Co.'s auto-finance business in Puerto Rico for $1.7
billion.
Popular, parent of Banco Popular de Puerto Rico, said it will
acquire the Wells subsidiaries Reliable Financial Services Inc. and
Reliable Finance Holding Co.
In the transaction, Banco Popular will acquire about $1.5
billion in retail auto loans and $340 million in commercial loans.
The price reflects a 4.5% discount on the assets acquired, Popular
said.
Popular said it expects the deal to close during the second
quarter of 2018 and provide a boost to earnings.
The bank said it will fund the purchase with existing
liquidity.
Reliable is expected to operate as an independent division of
Banco Popular to provide continuity of service, the company
said.
Popular shares closed at $41.20, up 3.62%, in Wednesday's
regular session and traded down 1.27% in late trading.
Write to Bowdeya Tweh at bowdeya.tweh@wsj.com
(END) Dow Jones Newswires
February 14, 2018 16:42 ET (21:42 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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