- Santander Holdings USA (SHUSA), a wholly-owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE:SAN) to acquire remaining 20% outstanding common stock of Santander Consumer USA (NYSE:SC) for $41.50 per share in cash, representing a total equity value of $12.7B.
- The transaction is expected to close in the fourth quarter of 2021.
- The offer price of $41.50 per share in cash represents a premium of approximately 14% to the $36.43 closing price of SC's common stock on July 1, 2021.
- Upon completion of the transaction, SC will become a wholly owned subsidiary of SHUSA and will cease listing on NYSE.
- The transaction is expected to immediately contribute to Banco Santander, S.A.’s earnings and provide an effective deployment of capital.
- The estimated capital impact at closing to SHUSA’s CET1 ratio is a decline of 73 bps and to its parent, Banco Santander, would be a decline of ~10 bps.
- The transaction is expected to be accretive to its earnings per share by approximately 3% in 2022.