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* Part of bank's strategy to grow in U.S., emerging markets
* Santander says deal will have capital impact of 9 basis points
* Deal to be 1% accretive in group's EPS, generate 11% ROIC by third year (Adds details)
By Jesús Aguado
MADRID, July 15 (Reuters) - Spain's Santander said on Thursday its holding company in the United States agreed to buy U.S. fixed-income broker Amherst Pierpont for around $600 million as it gains a bigger foothold in a more profitable business in this market.
Santander said that, as part of the deal, Amherst Pierpont would become part of the Santander Corporate & Investment Banking (Santander CIB) global business line.
The Spanish lender also said the combined platform would have strong capabilities in corporate debt and securities finance across the United States and emerging markets.
"This acquisition is consistent with our customer focused strategy and our commitment to profitable growth in the USA (...) allowing us to strengthen our relationships with our corporate and institutional clients," Santander Chairman Ana Botin said in a statement.
Securities brokerages, or wealth management firms, are considered reliable sources of revenue because they generate fee-based revenues that are typically stable even in periods of volatility.
According to Santander, primary dealer Amherst Pierpont generated a return on equity (ROE) - a measure of profitability - of 28% in 2020, while Santander Group finished with an underlying ROE of 5.68%.
Amherst Pierpont, designated a primary dealer of U.S. Treasuries by the Federal Reserve Bank of New York, has around 230 employees serving more than 1,300 institutional clients.
The deal comes as the U.S. economy is in full-swing recovery and follows record earnings by Santander in the United States.
Earlier in July, Santander's holding in the United States offered to buy a fifth of the shares it does not own in its U.S. consumer unit for around $2.4 billion.
Santander said the acquisition, which it expected to close by the end of the first quarter of 2022, would be 1% accretive to group earnings per share and generate a return on invested capital (ROIC) of around 11% by the third year, with a nine basis point reduction in group capital at closing.
The bank finished March with a fully loaded capital ratio (CET-1), the strictest measure of solvency, of 11.89% under new accounting standards, and within its 11-12% target. (Reporting by Jesús Aguado; additional reporting by Elizabeth Dilts in New York; Editing by Belén Carreño and Alex Richardson)