Santander Consumer agrees to parent's buyout offer

Santander Consumer USA Holdings in Dallas has agreed to a deal that will bring it completely under the umbrella of majority shareholder Santander Holdings USA.

Santander Holdings will pay $2.5 billion, or $41.50 a share, in cash for the remaining 20% stake in the subprime auto lender. The premium is roughly double what Santander Holdings offered last month.

The deal is expected to close in the fourth quarter.

The offer price represents a premium of about 14% to Santander Consumer USA’s closing price on July 1, the day prior to the announcement of Santander Holdings’ initial buyout proposal.

Piper Sandler and Covington & Burling advised a special committee formed by Santander Consumer USA. Hughes Hubbard & Reed was legal counsel for Santander Consumer USA.

J.P. Morgan Securities and Wachtell, Lipton, Rosen & Katz advised Santander Holdings USA, which has complete ownership of other U.S. businesses, including a broker-dealer, a private bank and a retail bank.