Banco Santander has agreed to acquire GE Capital’s consumer-finance business in Nordic region including Sweden, Denmark and Norway, in a transaction valued at approximately €700m ($952m).

Under the terms of the definitive agreement, Banco Santander’s consumer-finance unit, Santander Consumer Finance, will acquire the GE Money Bank business, with the deal expected to complete during the second half of 2014, after regulatory approvals.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Commenting on the transaction, Banco Santander chairman Emilio Botín said, "The acquisition of GE Capital’s business in the Scandinavian countries is an important step in Santander Consumer’s growth strategy."

"It’ll increase its geographical diversification and strengthen its position as the leading consumer finance provider in Europe."

Santander believes that GE Capital’s business in the Nordic countries will complement its current presence in those countries and will enable Santander Consumer Finance to emerge as a leading consumer finance provider in the region.

GE Money Bank, which manages a loan portfolio of €2.35bn, has ideal positions in consumer finance business lines, including direct loans and credit cards. Sweden accounts for 55% of GE Money Bank’s loans in the region, with Norway at 26% and Denmark at 19%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Upon completion of the takeover, both businesses will be integrated, with the new entity Santander Consumer Finance Nordic to represent nearly 17% of the unit’s loan portfolio.

After acquisition, Santander Consumer Finance Nordic will serve more than 1.2 million customers in the region.