Banco Santander and Warburg Pincus affiliates FINESP Holdings and Temasek have entered into a definitive agreement to create a leader in the custody business.
With Banco Santander’s custody operations in Spain, Mexico and Brazil put at €975 million, the Warburg group will acquire a 50 percent stake for approximately €410 million.
The transaction, which is expected to close in the final quarter of this year, will focus on enhancing Banco Santander’s products and services to its customers through greater investment in its technology platform and team.
Warburg has a successful track record in financial services investing and has previously partnered with Banco Santander to jointly build best-in-class businesses. With 11 offices globally, Temasek will offer access to the mature economies of North America, Europe, Australia and New Zealand.
Banco Santander’s CEO, Javier Marín, said: “With this alliance, Santander will significantly increase its fund administration, depositary and custody business in markets where we are already leading providers.”
“The transaction will enable us to increase and improve the products and services we offer our clients, with a higher value-added proposition adapted to their needs.”
Daniel Zilberman, Warburg Pincus managing director and head of its European financial services group, said “We are pleased to partner with Banco Santander and the Santander custody management team to enhance the company's focus on providing best-in-class products and services to its customers in Spain and Latin America.”
“The custody market benefits from long term structural growth and we look forward to supporting management in accelerating the company’s growth and service offering.”
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