DC Advisory advised MAPFRE on the acquisition of Santander Spain's General Insurance business

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