Abbey Acquisition by Banco Santander Essay

1882 Words8 Pages
M&A in the Financial Services 2005 Outline <ol> <li value="1"> Abstract <li value="2"> Introduction <li value="3"> Body <li value="3">1 Reasons for acquisition <li value="3">2 Benefits for both parties <li value="3">3 Royal Bank of Scotland <li value="3">4 Shares <li value="3">5 Cooperation between Santander and RBS <li value="3">6 Potential growth benefit <li value="3">7 Santander and Abbey before acquisition <li value="3">8 Some problems remaining <li value="4"> Conclusion <li value="5"> References </ol> Abstract The shareholders also have benefit from the acquisition: Abbey's shareholders have the opportunity to own a significant part of the Banco Santander. Under the terms of acquisition, Abbey…show more content…
In February the bank announced the best results in the history of the company: earnings increase 20% to $4 billion. 6,400 employees moved into the bank's $730 million headquarters. Nevertheless, there are still clouds on the horizon. The profit indicators for 2004 do not include Abbey which lost money in 2003 and is not fully integrated into company yet. Mergers and acquisitions in financial services business area are very common and result in consolidation of the business unit. Acquisition is beneficial for all sides involved and Santander's acquisition of Abbey National of the UK is an evidence of this. Abbey has a major position in the United Kingdom mortgage market. Its strong distribution network represents for Banco Santander and Abbey shareholders a valuable opportunity: application of Banco Santander's commercial and technological practices to Abbey's banking operations. Banco Santander is a Spanish bank with an international presence which was established in 1857. Today it is one of the largest banks in the world with approximately 41 million customers and it is present in the more than 10 countries. In addition, according to the statistics at 31 December 2003, the Banco Santander Group was the second largest banking group. Its value is &#1026;44.8 billions and total assets are &#1026;351.8 billions. In addition, &#1026;108.9 billions is saved in mutual funds and pension funds. It

More about Abbey Acquisition by Banco Santander Essay

Open Document