Santander buys auto financing unit in US
Source: Agencies |
September 1, 2010, Wednesday
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Print Edition
Print Edition
BRITISH bank HSBC Holdings Plc said yesterday it has sold its last US auto finance businesses to Spain's Santander for about US$3.56 billion in cash, completing its exit from a market that cost it billions during the financial crisis.
On top of the payment, the Santander Consumer USA Inc unit is assuming US$431 million in debt, HSBC said. The loan book acquired by Santander was valued at US$4.3 billion.
The deal follows a similar move in March, when Santander acquired US$1 billion in auto finance loan receivables from HSBC.
HSBC came to grief in the United States through its US$14 billion acquisition of Household International Inc in 2002.
The acquisition made HSBC the biggest subprime lender in the US.
The company wrote off billions in losses on dud US loans in the global credit crisis.
It announced in March last year that it would stop making consumer loans in the United States and would wind down the consumer lending business by 2014.
On top of the payment, the Santander Consumer USA Inc unit is assuming US$431 million in debt, HSBC said. The loan book acquired by Santander was valued at US$4.3 billion.
The deal follows a similar move in March, when Santander acquired US$1 billion in auto finance loan receivables from HSBC.
HSBC came to grief in the United States through its US$14 billion acquisition of Household International Inc in 2002.
The acquisition made HSBC the biggest subprime lender in the US.
The company wrote off billions in losses on dud US loans in the global credit crisis.
It announced in March last year that it would stop making consumer loans in the United States and would wind down the consumer lending business by 2014.
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