Popular’s banking subsidiary Banco Popular de Puerto Rico has agreed to acquire Wells Fargo’s auto finance business in Puerto Rico for around $1.7bn.
Under the deal, Banco Popular will acquire certain assets and liabilities related to Wells Fargo’s auto finance business in Puerto Rico from its subsidiaries Reliable Financial Services and Reliable Finance Holding.
Banco Popular will acquire$1.5bn worth retail auto loans and $340m worth commercial loans.
The deal also includes the acquisition of certain other assets and assumption of certain liabilities of Reliable.
Reliable will continue to operate as a separate division under Banco Popular for a period of time after closing of the deal. In addition, Reliable employees will join Banco Popular on or after closing of the deal.
Subject to customary closing conditions, the deal is expected to complete in the second quarter of this year.
Popular CEO Ignacio Alvarez said: “Reliable shares many values that are important to Popular: excellent customer service, disciplined underwriting, best-in class employees and social commitment.
“Popular Auto and Reliable customers can rest assured that they will continue to receive the quality of service and customer experience to which they are accustomed.”
Reliable president and CEO José Arbona said: "We are enthusiastic about this transaction since we are confident that it will be positive for Puerto Rico and particularly for the auto industry.”
Established in 1893, Popular offers retail, mortgage and commercial banking services through its banking subsidiary, Banco Popular de Puerto Rico.
Via specialized subsidiaries, the firm also offers auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries
Image: Wellsfargo headquarters. Photo: courtesy of Laimerpramer.