Grupo Financiero Santander Mexico, part of Santander group, has entered into an agreement with GE Capital to acquire GE's consumer mortgage business in Mexico, encompassing all of its operations, including its $2bn consumer mortgage portfolio.

Headquartered in Mexico City, GE Capital has provided consumer mortgages in Mexico since 2002. Its consumer mortgage business has been part of GE Capital’s Restructuring Operations organization since early 2009.

The financial terms of the transaction were not disclosed and the transaction, which requires customary regulatory approvals, is expected to close in the first half of 2011.

GE Capital Restructuring Operations president and CEO Mark Begor said that this sale is consistent with the strategy to exit non-strategic businesses that lack scale to help reduce GE Capital’s balance sheet while investing in core industrial and commercial finance platforms, including in Mexico.

Grupo Financiero Santander executive president Marcos Martinez Gavica said this acquisition will make the bank the second leading provider of mortgages in Mexico.