Santander is planning a joint venture with China Construction Bank (CCB), the Financial Times reported, citing state media. The Spanish bank, the largest in the eurozone, declined to comment, but sources said the venture will focus on rural banking and car financing. State media said the joint financial holding company will likely have an initial capital of US$439 million, rising to US$732 million in three years. Santander and CCB will hold 60% and 40% of the venture, respectively. The venture intends to open 100 village banks. The announcement follows moves by Santander to acquire assets in the UK, the Americas and continental Europe. BBVA, Spain’s second-largest bank, invested US$1.45 billion in China Citic Bank last December, increasing its share to 15%.
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