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Santander to acquire parts of Deutsche Bank's Polish biz for €305M

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Santander to acquire parts of Deutsche Bank's Polish biz for €305M

Banco Santander SA and Polish subsidiary Bank Zachodni WBK SA agreed to acquire Deutsche Bank Polska SA's retail and private banking businesses, excluding its foreign-currency mortgage portfolio, for an estimated total consideration of €305 million.

The deal includes the Deutsche Bank AG unit's small and medium-sized enterprise business, asset management unit and sales networks, with 113 branches and roughly 1,500 employees. It also includes the shares of DB Securities SA in Poland.

The businesses to be acquired have assets amounting to €4.35 billion, total loans of €4.30 billion and customer deposits of €2.51 billion as of June-end. Based on these figures, as well as that of Bank Zachodni as of September, the combined Polish bank will have total assets of approximately €39.8 billion, with €30.3 billion in loans and €28.3 billion in customer deposits.

The transaction is expected to close by the end of 2018, subject to regulatory and other approvals. The acquisition is expected to deliver a return on investment of 15% by 2021 and have a positive impact on Santander's EPS, with no impact on the group's capital ratios, according to a Dec. 14 statement.

Deutsche Bank Polska remains committed to its other existing businesses in Poland, namely corporate and investment banking, including global transaction banking businesses. It will also continue to provide banking services for Polish and international corporate clients, financial institutions, and government agencies, as well as its foreign-currency mortgage retail borrowers, Deutsche Bank said separately.

Deutsche Bank added that the transaction is in line with its effort to continue to sharpen its focus and reduce complexity.