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Santander to float unit in Mexico


The Spanish bank, suffering at home, is looking to raise as much as £2.54 in the IPO

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Santander is to float part of its Mexican division in what is considered to be the largest ever initial public offering in Mexico, which is currently enjoying an economic boom, the Spanish bank said on Thursday.

It will register its plans in the coming days as the euro zone’s biggest bank outlines plans to raise as much as $4 billion (£2.54 billion) from the flotation, according to Bloomberg.

The bank said in a statement it had not yet decided how much of the Mexican business to list, but would in any case retain a majority stake.

It will list the shares on the Mexico City and New York stock exchanges, and will market the offering jointly with its Santusa Holding subsidiary.

Spanish builder Obrascon Huarte Lain floated its Mexican unit in November 2010 in a $910 million listing that was the biggest in Mexico in nearly two decades.

Santander has operations in Argentina, Brazil, Mexico, Chile, Peru, Puerto Rico and Uruguay, a customer base of 41 million and over 6,000 branches. Latin America makes up nearly a fifth of the group's assets and 52 percent of its net profit.

It listed part of its Brazilian unit in 2009.

The company shelved plans to list its UK business in June this year but still expects to spin off that arm and float in London either next year or in 2014.

Santander shares were up 0.9 percent at 5.445 euros, compared with a 0.95 percent rise in Madrid's blue-chip IBEX index.

photo credit: Reuters

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Santander to float unit in Mexico
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