Spanish lender Santander is reportedly near to offload certain stake in its securities custody business, worth around 1 billion ($1.4 billion), to group of private equity firms.
Citing a report by Expansion newspaper, Reuters reported that US buyout firm Warburg Pincus is likely to buy a 50%t stake in the Spanish, Mexican and Brazilian parts of the division.
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Santander’s Global Custody and Securities Services unit could be worth between 500 and 1bn, according to the newspaper.
The deal might include the unit’s business in Spain, Mexico and Brazil, the newspaper said, although other markets such as Chile, Portugal and Argentina could eventually be involved.
Espirito Santo Investment Bank banking analyst Juan Carlos Calvo was quoted by Reuters as saying, "We believe this deal could generate some capital gains."
Santander had divested half of its asset management business to Warburg Pincus and fellow private equity group General Atlantic in 2013, as part of its plan to expand the business.
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