Banco Santander Reaches EUR936.5 Million Termination Agreement With Allianz
June 24 2019 - 3:34AM
Dow Jones News
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 patrick.costello@dowjones.com.
(END) Dow Jones Newswires
June 24, 2019 03:19 ET (07:19 GMT)
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