Santander Consumer (SC) to be Acquired by Santander Holdings
Santander Consumer USA Holdings Inc. SC has agreed to be acquired by its majority shareholder Santander Holdings USA, Inc. The deal is expected to be completed in the fourth quarter of 2021, following which, Santander Consumer will become a wholly-owned subsidiary of Santander Holdings.
Santander Holdings will acquire Santander Consumer for $12.7 billion or $41.50 per share in cash.
Notably, on Jul 2, 2021, Santander Holdings sent a non-binding proposal to Santander Consumer to acquire all of the outstanding common shares of the latter that were not yet owned by Santander Holdings.
The current offer price of $41.50 per share represents a 14% premium to Santander Consumer’s closing price on Jul 1.
Now, per the terms of the merger agreement, a wholly-owned subsidiary of Santander Holdings will commence a tender offer to acquire all the outstanding shares of Santander Consumer’s common stock that Santander Holdings does not own yet for $41.50 per share.
Once the tender offer is complete, Santander Holdings will acquire all remaining shares not tendered in the offer through a second-step merger at the same price as in the tender offer.
However, the consummation of the tender offer is subject to certain conditions, which include receiving regulatory approval from the board of governors of the Federal Reserve System and other customary conditions.
So far this year, shares of Santander Consumer have rallied 87.6%, outperforming the industry’s growth of 50.4%.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the finance space are mentioned below.
Credit Acceptance Corporation’s CACC earnings estimates for the current year have moved up 24.4% over the past 60 days. The company’s shares have gained 65.1% year to date. At present, it sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ally Financial Inc.’s ALLY earnings estimates for the current year have moved 26% upward over the past 60 days. The stock has rallied 44.5% so far this year. The company currently carries a Zacks Rank #2 (Buy).
Moelis & Company’s MC earnings estimates for 2021 have increased 16.8% over the past 60 days. So far this year, the company’s shares have gained 32.2%. At present, it has a Zacks Rank of 2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Moelis & Company (MC) : Free Stock Analysis Report
Credit Acceptance Corporation (CACC) : Free Stock Analysis Report
Santander Consumer USA Holdings Inc. (SC) : Free Stock Analysis Report
Ally Financial Inc. (ALLY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
