Banco Santander and CNP have reached a definitive agreement by which the French insurance company will acquire a 51% stake in the three companies that service Santander’s consumer finance unit (SCF) and which are based in Ireland. Under the terms of the agreement, SCF will distribute on an exclusive basis the whole range of products sold to SCF customers in several countries where it operates, including Germany, Spain and the Nordic countries.
The agreement, which is subject to the relevant regulatory authorizations, values the insurance companies, which distribute life and non-life products through SCF, at EUR 568 million. The transaction, which is expected to close before the end of the year, will generate a net capital gain for Grupo Santander of EUR 250 million, which will be fully used to strengthen the balance sheet.
CNP is a major European life insurer, with around EUR 28 billion of premiums. It is the leader in France while also having a growing international business, with operations in Brazil, Italy and Spain among other countries. The partnership will enable SCF to boost its future insurance business and will deliver better products and quality of service for customers, thanks to CNP’s long track record and expertise in the insurance business, particularly in credit insurance and payment protection.
According to the company, he price of the operation is 395 million dollars (EUR 290 million).