ING Groep (ING) has agreed to sell ING Hipotecaria, its mortgage business in Mexico, to Grupo Financiero Santander Mexico. (BSMX) for around $50M in cash, as part of ING's effort to divest its insurance and investment management businesses. The business serves 28K customers through its 20 branches, which remained with ING following the divestment of its Latin American pensions, life insurance and investment management operations in 2011.
ING is selling its Mexican mortgage financing business (ING Hipotecaria) to Santander Mexico (BSMX); terms are undisclosed, and the deal is expected to close in 2H. ING says the sale is part of its efforts to unload its insurance and money management ops, and comes two days after a report the company is close to selling its South Korean life insurance unit. As of March 31, ING Hipotecaria had a loan portfolio of 12.3B pesos ($968M).
Spain's Banco Santander (SAN -4%) is successful in raising $4B as Mexican subsidiary Grupo Financiero Santander (BSMX +7.8%) dually lists in Mexico and the U.S. Analysts say the Mexican unit should see solid demand in the U.S., since it's part of a strong banking franchise plus “indiscriminate demand” via index trackers as it will be represented by all of the respective ETFs.
Grupo Financiero Santander Mexico SAB de CV along with its subsidiaries provides banking, securities brokerage, financial advice, & other related investment services to individual & corporate customers.