Popular to Buy Wells Fargo's Auto-Finance Business in Puerto Rico for $1.7 Billion

   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)

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