Business & Banking

May 1, 2002

SCH Merges Its Chilean Banks
In April, Spain's Santander Central Hispano secured full control of Banco Santiago and announced plans to merge it with Banco Santander Chile, its other Chilean bank. The merger will create Chile's biggest bank and comes just a few months after Chilean conglomerate Quiñenco united its two banks, Banco de A Edwards and Banco de Chile earlier this year. SCH paid the Central Bank of Chile $670 million to double its stake in Banco Santiago after a lack of investor interest forced the government to call off a public offering to sell its 35.45% stake in the bank.

The merger of Banco Santiago and Banco Santander Chile was long expected, although Santander has sometimes forced banks that it owns in the same market to compete with each other. Both Chilean banks are highly profitable. In March, Santiago reported a return on equity...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial



LatinFinance Events

Poll

Are populist governments like Venezuela & Argentina turning pragmatic?

Vote