Grupo Financiero Santander Mexico announced on Monday that its subsidiary, Banco Santander Mexico, has reached an agreement to acquire the equity stock of ING Hipotecaria, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad No Regulada, a subsidiary of ING Group.
ING Hipotecaria provides mortgage-related products and services to more than 28,000 clients and operates 20 branches throughout Mexico. As of March 31, 2013, ING Hipotecaria’s loan portfolio totaled Ps.12.3 billion.
The transaction, which is subject to customary regulatory approvals, is expected to close in the second half of 2013. If all authorizations for the acquisition are obtained, Banco Santander Mexico expects to purchase ING Hipotecaria for Ps.643 million, approximately US$50 million in cash. The purchase price is subject to adjustment based on ING Hipotecaria’s final pre-close financial statements. The acquisition is expected to generate operating synergies and contribute favorably to Banco Santander Mexico’s overall performance once ING Hipotecaria has been fully integrated.
Marcos Martinez, Executive Chairman and CEO of Banco Santander Mexico, commented, «We are very pleased to have reached an agreement to acquire ING Group’s Mexican mortgage business, ING Hipotecaria, which will further strengthen our core portfolio and make Santander Mexico the second largest mortgage provider in Mexico. Roughly three quarters of ING Hipotecaria’s client base consists of middle- to high-income segments, making this transaction complementary to our current client base. We see excellent opportunities for cross-selling our other banking products and also have identified operating cost synergies. We believe this acquisition will further strengthen our presence in the mortgage market in Mexico.»
Grupo Financiero Santander Mexico provides a wide range of financial and related services, including retail and commercial banking, securities brokerage, financial advisory and other related investment activities. Santander Mexico offers a multichannel financial services platform focused on mid- to high-income individuals and small- to medium-sized enterprises, while also providing integrated financial services to larger multinational companies in Mexico. As of March 31, 2013, Santander Mexico had total assets of Ps.856.8 billion under Mexican GAAP and more than 10 million customers. Headquartered in Mexico City, the Company operates 967 branches and 226 offices nationwide and has a total of 13,498 employees.