Santander divests 30.5% of Caceis to Crédit Agricole, solidifying the French bank’s full ownership of the securities custody firm established in 2019.
Banco Santander has recently announced a significant strategic maneuver, divesting 30.5% of its stake in the securities custody firm Caceis to the French banking giant, Crédit Agricole. This transaction, which will culminate in Crédit Agricole acquiring full ownership of Caceis, marks a pivotal moment in the evolution of the depository established by both financial entities in 2019.
In a formal communication to the National Securities Market Commission (CNMV) on Thursday evening, Santander disclosed the agreement, although the financial specifics of the deal remain undisclosed. Caceis emerged from a collaborative effort between Santander and Crédit Agricole, wherein each institution contributed its respective depository and custody operations. At the inception of this partnership, Santander contributed 100% of its business in Spain and a 49% stake in its Latin American operations.
It is noteworthy that the joint depository and custody business in Latin America will remain under the joint control of both banks, thus preserving the collaborative spirit that birthed Caceis. This strategic divestiture aligns with Santander’s overarching strategy of proactive capital management, which is anticipated to yield a value-generating impact for shareholders. Upon completion of the transaction, Santander expects a positive effect of approximately 10 basis points on its fully loaded Common Equity Tier 1 (CET1) ratio, as articulated in their communiqué to the stock market regulator.
The establishment of this joint venture has already proven lucrative for Santander, resulting in a capital gain of €700 million and the release of three basis points of capital. However, the bank, under the stewardship of Ana Patricia Botín, has emphasized that this transaction will not materially affect the Group’s financial results or earnings per share.
As is customary with such transactions, the completion is contingent upon obtaining the requisite regulatory approvals and fulfilling other conditions. Santander is optimistic that these approvals will be secured by 2025, allowing for a seamless transition of ownership.
Caceis stands as one of Europe’s preeminent depository and asset custody firms, boasting an impressive €4.7 trillion in assets under management, €3.3 trillion in deposits, and €2.3 trillion in depository services. Its operational footprint spans 17 countries across Europe, Asia, the United States, and Latin America. Since the inception of their partnership, both Santander and Crédit Agricole have accelerated Caceis’s growth trajectory, notably through the acquisition of RBC’s depository business.
This divestiture is not an isolated incident; it reflects a broader trend among financial institutions. For instance, Sabadell divested its custody operations to BNP Paribas in 2020, while the same year saw Crédit Agricole acquiring Mapfre’s custody business. More recently, Banca March sold its subsidiary Inversis to Euroclear, and BBVA initiated a sale process in which Caceis expressed interest, only to withdraw later.
BSantander’s decision to divest its stake in Caceis not only underscores its commitment to strategic capital management but also highlights the dynamic landscape of the financial services sector, where consolidation and divestiture are increasingly commonplace.
