The Spanish Banking group Satander, which is centred on Banco Satander, S.A., has announced to buy significant stake in Bank of Shanghai. This move will make Satander group the second largest shareholder of Shanghai Bank.
Banco Satander is the largest bank of Euro Zone in terms of market capitalization. In recent years group has undergone a series of acquisitions to expand in organic way. In April 2013, Satander was ranked 43rd in Forbes global 2000 list of world's largest companies.
The deal is valued at $646.8 million (Euro 470 million). The deal also includes a cooperation aggrement between the two banks. Satander is going to buy stake held till now by HSBC. As of now, HSBC owns 19% stake in the bank. Satander will provide team of permanent employees for starting the knowledge sharing developments. This move is considered to start with breaking the ice.
The Satander group had written down billions of dollars of mortgages last year after Spain home market crisis. After few acquisitions, now Satander group is considered as BUY opportunity again in broker houses.
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