Spanish Bank Making Big Automotive Moves reports Car Freedom Today
Close to Chrysler deal; moving into Chinese market as well
The bank is Spain's largest asset, and has been talking with Chrysler for several month regarding an in-house lending opportunity that expected to be called Chrysler Capital, according to sources.
If the deal is indeed put to ink, Santander Consumer USA, which has already a loan profile of nearly €18 billion, would take the place of Ally Financial, who is Chrysler's current preferred lender, a company majority controlled by the United States Government.
A Banco Santander spokesman did not wish to comment on the plan, which was first reported by the Wall Street Journal. Chrysler also opted to not give a response.
Santander is preparing its U.S. Consumer finance business for the public offering initial bids, which would come as part of an agreement with three private firms who bought 35% of the unit in 2011.
The agreement would have three investors, Warburg Pincus, Kohlberg Kravis Roberts, and Centerbridge Partners, all with an option of selling back their minority to the Santader firm, or opting to take a spin-off later.
Santander is in such prime position primarily due to the ability to withstand the real estate crisis across the domestic market. The bank was able to do so primarily based on the earnings created from overseas subsidiaries.
Last year, Santander was able to raise $4.13 billion by selling a quarter of its stake in the Mexican subsidiary in what was the third-largest offering in 2012. That maneuver followed previous spin-offs from two South American countries and a Polish unit.
Last week, Santander was able to gain Chinese approval to operate within the country as an independent car lender. It is now one of the first foreign companies to do so.
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