Santander’s US division is set to buy the minority stake in its American consumer unit for $2.5bn.
Snapping up the remaining 20 per cent of the business, the deal values the entire Santander Consumer US unit at $12.7bn, the bank said in a statement.
Santander offered some $41.5 per share – a 6.4 per cent increase from its July offer of $39 per share, or $2.36bn in total.
The merger will see Santander US hold complete ownership of its US consumer unit.
The bank had recently offered to buy an 8.3 per cent stake in its Mexican consumer unit, which it also did not own, as it looks to expand as it emerges from the pandemic.
Approved by the boards of both companies, the merger is expected to be completed by late October, or in the final quarter of this year.
The deal comes as the US keeps its head down amid economic recovery, with American businesses grappling with historical high consumer demand – which has led to a string of staffing and supply chain hang ups.