Santander to absorb Banesto and Banif

18 December 2012

Santander is set to close some 700 branches after absorbing two other Spanish banks, it has emerged.

In a statement issued yesterday (17 December), the major European financier revealed its board of directors has approved a plan that will see the organizations take over Banesto and subsidiary Banif as part of the restructuring process for the Spanish financial system.

Santander owns 89.74 per cent of Banesto's share capital and 100 per cent of Banif and has decided to bring these brands under its primary business name in order to assist the process of reducing the number of competitors in Spain while also creating larger financial institutions.

The bank estimates that this move will result in annual cost savings of around ten per cent - €420 billion ($553 billion) - after three years.

Emilio Botin, chairman of Santander, said the deal is a "good transaction for everyone" and cements his company's position as the "strongest, most solid bank in Spain".

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development