Three companies steer Santander U.S. arm’s stake purchase in shopper unit

(Reuters) – Wachtell, Lipton, Rosen & Katz, Covington & Burling and Hughes Hubbard & Reed are steering a Banco Santander SA subsidiary’s deal to buy a 20% stake in Santander’s U.S. automotive mortgage lender for $2.5 billion in money.

Santander Holdings USA Inc introduced on Tuesday that it had agreed to buy the remaining stake in Santander Shopper USA Holdings Inc. The holding firm for Santander’s U.S. companies already owns roughly 80% of the patron enterprise, based on the press launch.

The Madrid-based financial institution’s U.S. holding firm has turned to repeat advisor Wachtell for steerage on the transaction. The agency’s crew is led by company companions Edward Herlihy, Richard Kim and Mark Veblen and consists of tax companion Joshua Holmes, and government compensation and advantages companion David Kahan.

Wachtell beforehand endorsed Santander Holdings USA on its repurchase of senior notes it had issued and several other different public debt securities transactions, based on the agency’s web site.

The agency additionally has expertise working with different Santander entities on transactions together with Santander Shopper’s preliminary public providing. Kim was among the many attorneys that suggested Banco Santander on the sale of its Puerto Rico banking franchise to FirstBank Puerto Rico, based on his agency profile.

On the opposite facet of the deal, Santander Shopper has tapped a Hughes Hubbard & Reed crew led by the agency’s deputy chair Kenneth Lefkowitz and securities and capital markets companion and chair Gary Simon. The agency’s crew additionally consists of worker advantages and government compensation companion Charles Wachsstock and tax companion Andrew Braiterman.

Hughes Hubbard & Reed has steadily suggested Banco Santander in its position as an arranger and structuring agent for loans, based on the agency’s web site.

A Covington crew together with company companions Scott Smith and Andrew Ment, and financial institution regulatory companion Randy Benjenk is advising Santander Shopper’s particular committee, which reviewed the deal.

The transaction is predicted to wrap up by late October or in 2021’s fourth quarter.

Santander Holdings USA’s monetary advisor is J.P. Morgan Securities LLC and the particular committee’s is Piper Sandler Cos.

Learn extra:

Santander US holding to purchase 20% of U.S. shopper unit for $2.5 bln

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