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Santander to absorb Banesto and Banif

  • Banco Santander is to absorb two Spanish banks, Banesto and Banif, which will result in the closing down of 700 branches.

    Santander owns 90 percent of Banesto and is to buy out the minority shareholders with Santander shares at a 25 percent premium. Santander already owns all of Banif.

    The three banks have a total of 4,664 branches across Spain. The remaining branches are to be branded as Santander.

    According to Santander, the merger is expected to save it $684 million a year in three years' time.

    The move comes in a bid to restructure the Spanish financial system.

    Santander did not disclose how many jobs would be cut.