A Santander bank in Barcelona. Photo: AP
Spanish bank Santander will pay €700 million to buy GE Money Bank AB, the consumer credit arm of GE Money Nordic with activities in Sweden, Denmark and Norway, it said on Monday.
The purchase of credit activities in the Scandinavian region is an important step in the development strategy of Santander's consumer credit division, the bank's president Emilio Botin said in a statement.
The deal, worth the equivalent of $951 million, would broaden the division's geographical base and strengthen its position as leader on the European consumer credit market, he said.
The deal means that Santander Consumer Finance, which has a portfolio of consumer loans worth €8.9 billion, will acquire GE Money Bank's portfolio of loans worth €2.35 billion euros.
When the deal is completed, Santander Consumer Finance will have 1.2 million customers in Scandinavia, accounting for 17.0 percent of its total credit portfolio.