ABN Deal News Aids Banespa

Moody’s has put Banco Santander Banespa on positive outlook after the announcement of a proposed acquisition of ABN AMRO by a consortium including RBS, Santander and Fortis. “The potential acquisition of ABN AMRO’s Brazilian operations by Santander would double the existing share of assets and deposits of its subsidiary, Santander Banespa, and would raise it to a leading position in the Brazilian banking system,” says Moody’s. “A potential combination of Santander Banespa and ABN AMRO Real would also generate geographic and business synergies that could favor earnings,” it adds. Moody’s also noted that Santander’s track record of acquisitions and cost streamlining in LatAm would be positive for Banespa’s ratings, owing to gains of scale. As of March 31, Banespa had consolidated assets of 101.3bn reais and 8.6bn reais in equity.