Vene Sets Santander Unit Price

Santander has reached an agreement to sell its Venezuela unit to the government for $1.05bn, according to local and wire reports citing Venezuelan vice president Ramon Carrizalez. Venezuela will make an initial payment of about $630m when the government formally assumes control of the bank July 3, the reports sources say, with the rest paid in equal installments in October and December. The government announced its intention to nationalize the lucrative and far-reaching Banco de Venezuela last July, but it has been haggling over price since. Santander bought the financial institution from the government in 1996 after it had been nationalized in 1994. Banco de Venezuela claims more than 10% of the country’s market in terms of both loans and deposits.