Santander has announced that it is absorbing its subsidiary banks Banesto and Banif in a merger that will be completed next year, an action it says will result in savings of €520 million. It will also mean the closure of around 700 branches.
Santander is paying a premium of 24.9% to obtain the Banesto shares it does not already own. With the merger, Santander will have a network of 4,000 branches under a single corporate identity.