Grupo Financiero Santander Mexico Announces That Its Subsidiary, Banco Santander (Mexico), S.A., Has Reached an Agreement to Acquire ING Group's Mortgage Business in Mexico
MEXICO CITY, June 14, 2013 /PRNewswire/ -- Grupo Financiero Santander Mexico, S.A.B. de C.V. (BMV: SANMEX; NYSE: BSMX) ("Santander Mexico" or the "Company"), one of the leading financial groups in Mexico, today announced that its subsidiary, Banco Santander (Mexico), S.A., Institucion de Banca Multiple ("Banco Santander Mexico"), has reached an agreement to acquire the equity stock of ING Hipotecaria, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad No Regulada ("ING Hipotecaria"), a subsidiary of ING Group ("ING").
ING Hipotecaria provides mortgage-related products and services to more than 28,000 clients and operates 20 branches throughout Mexico. As of March 31, 2013, ING Hipotecaria's loan portfolio totaled Ps.12.3 billion.
The transaction, which is subject to customary regulatory approvals, is expected to close in the second half of 2013. If all authorizations for the acquisition are obtained, then based on ING Hipotecaria's audited 2012 financial statements, Banco Santander Mexico expects to purchase ING Hipotecaria for Ps.643 million (approximately US$50 million) in cash. The purchase price is subject to adjustment based on ING Hipotecaria's final pre-close financial statements. The acquisition is expected to generate operating synergies and contribute favorably to Banco Santander Mexico's overall performance once ING Hipotecaria has been fully integrated.
Marcos Martinez, Executive Chairman and CEO, commented, "We are very pleased to have reached an agreement to acquire ING Group's Mexican mortgage business, ING Hipotecaria, which will further strengthen our core portfolio and make Santander Mexico the second largest mortgage provider in Mexico. Roughly three quarters of ING Hipotecaria's client base consists of middle- to high-income segments, making this transaction complementary to our current client base. We see excellent opportunities for cross-selling our other banking products and also have identified operating cost synergies. We believe this acquisition will further strengthen our presence in the mortgage market in Mexico."
About Grupo Financiero Santander Mexico
Grupo Financiero Santander Mexico, S.A.B. de C.V. (Santander Mexico), one of Mexico's leading financial services holding companies, provides a wide range of financial and related services, including retail and commercial banking, securities brokerage, financial advisory and other related investment activities. Santander Mexico offers a multichannel financial services platform focused on mid- to high-income individuals and small- to medium-sized enterprises, while also providing integrated financial services to larger multinational companies in Mexico. As of March 31, 2013, Santander Mexico had total assets of Ps.856.8 billion under Mexican GAAP and more than 10 million customers. Headquartered in Mexico City, the Company operates 967 branches and 226 offices nationwide and has a total of 13,498 employees.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements. The forward-looking statements contained herein include, without limitation, statements about Santander Mexico's intent, belief, targets or current expectations concerning our future business development and performance and the expected synergies from the acquisition of ING Hipotecaria. While these forward-looking statements represent our judgment and current expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Information relating to risks, uncertainties and other factors that affect our business are included in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. The risks and uncertainties included in our filings and reports, including those with the U.S. Securities and Exchange Commission, could adversely affect our business and financial performance. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements, except as required by applicable law.
SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.