That is a 2nd purchase in China this year. Beginning of the year they made a purchase in consumer finance (should find the link back). But this purchase is much bigger.
Purchased from HSBC
A more commented article here (ES), the day after the announcement, including previous operations in China
- May 2013: Bought 20% of Bank of Beijing Consumer Finance
- March 2013: Fortune Auto Finance, a JV with Anhui Jianghuai Automobile (JAC) , Santander has 50%
And a good overview from Reuters (EN)
These moves are very significant, and are typical when Santander wants to seriously enter a country. They first start an activity in Consumer finance business. With minimum investments; it allows them to learn the market. Then they make small entry in retail banking, till the good opportunity appears. It was a surprise that the Shangai deal occurred so quickly after the consumer deals.
There are 2 other major markets where Santander is in a similar situation. Germany and USA.
These moves are very significant, and are typical when Santander wants to seriously enter a country. They first start an activity in Consumer finance business. With minimum investments; it allows them to learn the market. Then they make small entry in retail banking, till the good opportunity appears. It was a surprise that the Shangai deal occurred so quickly after the consumer deals.
There are 2 other major markets where Santander is in a similar situation. Germany and USA.
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