SANTANDER is to buy a majority stake in the personal finance arm of department store El Corte Ingles.
The country’s biggest bank by assets will buy 51% of the consumer finance division of the world’s third-largest department by sales.
The deal will see the El Corte Ingles finance department integrated into Santander Consumer Finance, easing the retailer´s debt burden and consolidating the bank´s position as Spain´s largest consumer lender.
The purchase will be the bank’s first significant investment in Spain since the onset of the financial crisis.
It will also go some way towards easing the €5 billion debt pile run up by El Corte Ingles as a result of a sharp fall in profits over the past five years.
The family-owned department store, founded in 1935, has faced stiff competition from cheaper rivals such as Mercadona, Dia and Zara owner Inditex since the downturn, resulting in a profit fall from €716 million in 2007 to €210 million last year.
- Gib’s Got Talent! - 23 Mar, 2014 @ 18:30
- Artists put best foot forward in Velez-Malaga - 23 Mar, 2014 @ 14:30
- UK hospital boss in hot water over Ibiza break - 23 Mar, 2014 @ 10:30
- Float on Gibraltar - 23 Mar, 2014 @ 06:30
- Gibraltar gets dancing - 22 Mar, 2014 @ 18:30
- EU imposes strict rules on carbon emissions - 22 Mar, 2014 @ 14:30
- Axarquia mayor resigns over unsporting behavior - 22 Mar, 2014 @ 10:30
- Trouble in the skies over Gibraltar - 22 Mar, 2014 @ 06:30
- Lenox Napier found guilty of defaming the Euesdens - 20 Mar, 2014 @ 10:28
- Spanish pizza chain La Mafia sparks outrage in Italy - 18 Mar, 2014 @ 18:40