Banco Santander has agreed to buy the Royal Bank of Scotland's European consumer finance businesses worth €2.2 billion (US$3.46 billion), the bank said in a statement Friday.
The deal does not include RBS consumer finance business in the U.K. and Ireland, the statement said.
Santander already provides consumer finance services in 18 countries and through this deal will add 861 employees serving 2.3 million clients.
Last week Santander agreed to take over EUR1 billion worth of European financial assets from General Electric Co.'s (GE) GE Money.
The consumer finance operations of Santander, currently the euro-zone's top bank by market value, generated €719 million (US$1.13 billion) in profit last year, or just under 10 percent of its total net profit in 2007.
RBS consumer finance operations include installment loans, directly and through partners. It has a significant presence in the credit card business and provides consumer finance through retail chains.
Santander said the transaction is subject to a final agreement and approval from local authorities.
Santander and RBS have acted as partners throughout the years, including a joint takeover of Netherlands's ABN Amro for more than €71 billion. The two institutions have other cross shareholdings including Fortis, which was also the subject of a joint takeover bid.
