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Santander's Acquisition of Abbey: Banking Across Borders
On Monday, July 26, 2004, the chairman of Grupo Santander, Emilio Botín, stood at the top of Goldman Sachs’s London headquarters with Santander’s CEO, Alfredo Sáenz, and a number of their closest collaborators. Next to them Luqman Arnold, chief executive of Abbey National, spoke to a large gathering of journalists: “We are convinced Santander is able to deliver the turnaround [of Abbey] faster than we can.” Abbey National (U.K.) and Banco Santander (Spain) were announcing the terms of Banco Santander’s acquisition of Abbey National. Under those terms, Abbey shareholders would receive one new share of Banco Santander and a one-time 31 pence extraordinary dividend for each Abbey share. The deal valued Abbey’s capital at approximately 12.54 billion euros (€) and it implied a premium relative to the closing price of Abbey’s shares the previous Friday of approximately 17.4% and of 28.4% relative to the average price of the previous three months. The acquisition had the unanimous support of the boards of directors of both Abbey and Santander. The acquisition would result in the 10th-largest bank in the world in terms of market
Added on 2023-05-27
About This Document
This presentation discusses Santander's acquisition of Abbey National and its international expansion in retail banking. It covers the financial benefits, cost savings, and revenue from cross-selling of monetary products to Abbey's current consumers. The presentation also highlights the terms related to the transaction and the main supervisory variations that assisted this modification towards worldwide investment.
Santander's Acquisition of Abbey: Banking Across Borders
On Monday, July 26, 2004, the chairman of Grupo Santander, Emilio Botín, stood at the top of Goldman Sachs’s London headquarters with Santander’s CEO, Alfredo Sáenz, and a number of their closest collaborators. Next to them Luqman Arnold, chief executive of Abbey National, spoke to a large gathering of journalists: “We are convinced Santander is able to deliver the turnaround [of Abbey] faster than we can.” Abbey National (U.K.) and Banco Santander (Spain) were announcing the terms of Banco Santander’s acquisition of Abbey National. Under those terms, Abbey shareholders would receive one new share of Banco Santander and a one-time 31 pence extraordinary dividend for each Abbey share. The deal valued Abbey’s capital at approximately 12.54 billion euros (€) and it implied a premium relative to the closing price of Abbey’s shares the previous Friday of approximately 17.4% and of 28.4% relative to the average price of the previous three months. The acquisition had the unanimous support of the boards of directors of both Abbey and Santander. The acquisition would result in the 10th-largest bank in the world in terms of market
Added on 2023-05-27
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