Santander Reportedly Plans To Increase Stake In U.S. Consumer Unit

(RTTNews) - Banco Santander SA (BNC.L, BSBR, SAN) plans to go ahead with a proposal to increase control of its U.S. subprime auto loan unit, after the business passed the Federal Reserve's stress test last month, Bloomberg reported citing people familiar with the matter.

Banco Santander believes it can benefit from holding a bigger stake in Santander Consumer USA Holdings Inc. as the world's largest economy strengthens, the report said.

Banco Santander, which already owns 59 percent of the auto-loan provider, has been trying for two years to purchase a 9.7 percent stake from co-founder Thomas G. Dundon.

At current prices, a 9.7 percent stake would be worth about $450 million. In 2015, when Banco Santander announced its intention to purchase Dundon's holding, it gave a price tag of $928 million.