Banco Santander Buys Amherst Pierpont For 600 Million Dollars

Banco SantanderAna Botín, Santander Group executive chairman

Amherst Pierpont Securities, a US fixed income broker, was designated a primary dealer of U.S. Treasuries by the Federal Reserve Bank of New York in 2019. And it is currently one of only three non-banks to hold that designation. Amherst Pierpont has approximately 230 employees serving more than 1,300 active institutional clients from its headquarters in New York and offices in Chicago, San Francisco, Austin, other US locations and Hong Kong. The broker will become part of Santander Corporate & Investment Banking (Santander CIB) global business line.

Ana Botín, Santander Group executive chairman, said: “This acquisition is consistent with our customer-focused strategy and our commitment to profitable growth in the USA. It complements our product offerings and capabilities, allowing us to strengthen our relationships with our corporate and institutional clients. The Amherst Pierpont team bring a successful track record and experience in delivering value for their clients. We look forward to incorporating their many strengths into our very successful and growing CIB organization.”

Amherst Pierpont has generated attractive returns, with an average return on equity (RoE) of c.15% since 2016. In 2020 it generated RoE of 28% and an estimated return on risk weighted assets of 3%.

The transaction is expected to close by the end of the first quarter of 2022, subject to regulatory approvals and customary closing conditions.

Wachtell, Lipton, Rosen & Katz and WilmerHale served as legal advisors to Santander in connection with the transaction. Barclays served as financial advisor to Amherst Pierpont, and Shearman & Sterling as legal advisor.

On July 2, Santander launched an offer – for $2 billion at $39 per security – for 20% of its subsidiary Santander Consumer USA. It specialises in auto finance, has more than 3 million customers and has been listed since 2014.

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