2024-02-12 14:17:00
The Santander group is committed to increasing its presence in the automotive financing business.
This Monday, the legal manager of Santander Consumer Finance, María Catalina Grünwald, reported through an essential fact sent to the Financial Market Commission (CMF) that the company will buy Mundo Crédito, linked to Penta Financiero, Algeciras of Eduardo Elberg and Fernán Gazmuri.
According to the details reported to the regulator, the general manager of Penta Financiero, Rodrigo Spronhle, specified that the price of the operation is subject to various adjustments, but as a reference, the purchase would amount to a range of between approximately $50 billion and $70 billion. This is equivalent to between US$56.5 million and US$79.1 million.
Mundo Crédito provides financing for the acquisition of new or used motor vehicles and has an alliance to provide automotive loans to Citroën and DS.
The purchase agreement by the Spanish bank and Penta was closed on November 29 and on January 15 the transaction was submitted for evaluation by the National Economic Prosecutor’s Office (FNE), an entity that today notified that it instructed the start of the investigation.
Through a press release, the general manager of Santander Consumer, Cristián Amar, stated that “we are very happy with this step, because with this operation we strengthen our offer in this market.”
The deal
According to the terms of the acquisition, Santander Consumer will acquire Mundo Crédito’s loan portfolio, which will imply its exit from the business.
Likewise, the Spanish firm declared that it is interested in acquiring the first financing option for the acquisition of all Citroën and DS brand vehicles.
Both parties declared that they expect the transaction to close on April 1 or the first business day of the month following the month in which the FNE grants approval of this operation.
Santander Consumer and Penta Financiero assured that, as of this date, it is still not possible to adequately report or project the financial effects that the portfolio purchase could have on the assets, liabilities or results of the company.
The numbers
According to the latest financial statements of the two companies, Santander Consumer ended the third quarter of 2023 with profits of $14,040 million, recording a decrease of 27.4% compared to 2022.
Santander Consumer has alliances with different automobile brands. At the end of 2022, he reported that among those are Mitsubishi with 3.6% market share; MG with 4.9%; Chrysler Group comprising the Jeep, Dodge, Chrysler and RAM brands with a 2.7% share; Chery reaches 5.8%; SsangYong 1.1%: Fiat with 0.5%; Alfa Romeo and Maserati with 0.04%. Other brands with lower participation are Ferrari and Infiniti. In 2022, the company financed 12.9% of the new units sold on the market.
The entity has assets of US$ 1.3 billion and in 2023 financed a figure close to 50,000 vehicles, both new and used.
Santander’s commitment to the automotive financing business through the purchase of Mundo Crédito is not the first. Already in 2019 acquired 49% of the company that was in the hands of SKBergé for US$ 86.2 million.
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