Spain’s largest bank Santander moved one step closer to its goal to be a
full service retail bank in Germany with the acquisition of Sweden’s
SEB retail banking division, the bank has announced.

The €555m
($699.1m) deal comes as Santander attempts to increase its footprint in
both Europe, particularly Germany and Britain, as well as in higher
growth markets like Latin America, where it is reported to be planning
acquisitions in Columbia and Peru.

“Germany is a core market for
Santander. This acquisition is a significant step toward achieving our
goal of being a full service retail bank in Europe,” Chairman Emilio
Botin said in the bank’s press release.

The purchase price is
close to the €500m sources familiar with the matter told reporters
Santander would pay for the division, which made an operating loss of
€117m in 2009. Santander said its core capital ratio could fall by
ten basis points from the acquisition.

Earlier the Financial
Times cited Francisco Luzon, head of Santander’s Latin American
operations, as saying that the bank was looking to increase its presence
in Colombia and Peru, where it has market shares of between 10 and 20
percent.