Background

  • MAPFRE Group (MAPFRE) is the leading Spanish insurance company, listed on the Spanish Stock Exchange with a market capitalisation of approximately €7.6 billion
  • MAPFRE’s total consolidated revenue amounted to c. €28 billion in 2018
  • Banco Santander (Santander) is a leading Spanish financial group listed on the Spanish Stock Exchange, with a market capitalisation of approximately €71.3 billion
  • Santander España is a retail and commercial bank with more than 4,000 branches and a €218 billion gross loan value

Process

  • As a result of DC Advisory’s (DC) relationship with Banco Santander, in October 2018, DC introduced MAPFRE to the potential acquisition opportunity with the General Insurance (Motor & SMEs) business of Santander España
  • In November 2018, DC was hired as exclusive financial advisor to MAPFRE for the transaction
  • Santander arranged a competitive process to sell its Motor, SME Multi-risk and Third-Party Liability Insurance businesses
  • DC’s deep understanding of the business and its relationships with both MAPFRE and Santander allowed MAPFRE to move fast during the process

Outcome

  • In January 2019, MAPFRE acquired 50.01% of Santander’s General Insurance (Motor & SMEs), while Santander will retain the remaining 49.99%
  • The enterprise value of the transaction was €164.4 million
  • The acquisition also includes a long-term agreement, ending December 2037, for the distribution of Motor, SME Multi-risk and Third-Party Liability Insurance on an exclusive basis throughout the Santander banking network in Spain