Santander to Buy Citi Auto Loan Portfolio
Santander Consumer USA extended its buying spree today, inking a deal to acquire $3.2 billion of CitiFinancial Auto’s loan portfolio. Santander will also manage another $7.2 billion of Citi’s auto loans.
Terms of the deal, expected to close next quarter, were not disclosed. With these purchases, Santander’s managed auto portfolio will hover around $30 billion.
Speculation surfaced in December 2007 that Citigroup and HSBC were seeking buyers for their auto loan operations, as turmoil in the credit markets forced many large investment banks to reevaluate their holdings business-wide. HSBC ultimately sold its auto loan servicing business and $1 billion of receivables in November 2009 — to Santander Consumer USA.
In recent years, Santander has purchased Triad Financial Holdings; its parent, Spanish bank Banco Santander, bought Philadelphia-based Sovereign Bank.
