Santander raises swap terms by 5% to buy out 10% of its Brazilian unit

what happened

Spanish lender Santander said on Thursday it has raised the exchange ratio in its offer for the roughly 10% of its Brazilian unit that it does not already own by 5%, according to Reuters. If the offer is fully accepted, the bank would issue about 166 million new shares, or around 1.1% of its current share capital. The maximum consideration is estimated at about 1.9 billion euros ($2.1 billion), based on Wednesday's closing price.

The offer was first unveiled on July 30. Since then, shares of the Brazilian unit, adjusted for dividends, have risen 10%. Santander will ask shareholders to approve the capital increases at an extraordinary meeting expected on December 15, 2026.

why it matters

The deal comes against a weaker backdrop in Brazil: net profit there fell 15% from a year earlier as provisions rose 23%, even though the group's underlying third-quarter profit climbed 19%. For investors, the key points are the modest dilution of share capital and how the Brazilian business performs.

market impact

Santander: about 166 million new shares add modest dilution to the bank's capital

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