Banco Santander Totta has agreed to acquire Portugal’s troubled bank Banif-Banco Internacional do Funchal (Banif) in a deal valued at EUR150m ($162.8m).
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Banco Banif operates with 150 branches and has 400,000 customers.
Under the terms of the agreement, Santander Totta will purchase clients and branches of Banif, excluding problematic assets that will be transferred to a special vehicle.
Banif will retain a very restricted set of assets to be liquidated later, as well as subordinated debt.
"The acquisition of Banco Banif’s businesses positions Banco Santander Totta as Portugal’s second privately-held bank, after BCP-Milenium, with a 14.5% market share in loans and deposits," Banco Santander said in a statement.
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By GlobalDataThe deal includes an injection of EUR2.26bn to cover future contingencies, out of which EUR1.77bn will be offered directly by the state. The remaining amount of EUR489m will be offered by the Resolution Fund.
Banco Santander chairman Ana Botín said: "The acquisition of Banco Banif is another example of Banco Santander’s commitment to Portugal, one of the group’s main countries. We are fully committed to the economic development of Portugal and make available all our capacity to help people and businesses prosper in the communities where we operate."
