Banco Santander’s Insurance Operations Acquired by Zurich Financial

On February 22, 2011, Banco Santander, S.A. announced that it had signed a Memorandum of Understanding with Zurich Financial Services Group pursuant to which the two companies will enter into a 25-year strategic distribution arrangement in Latin America. As part of the transaction, Zurich will acquire a 51% participation in the life insurance, pension and general insurance operations of Banco Santander for $1.67 billion. These operations are based in Brazil, Mexico, Chile, Argentina and Uruguay. Zurich Santander Insurance America, the holding company for the joint venture, will be based in Madrid.

Cravath represented Banco Santander in this transaction. The Cravath team was led by corporate partner David Mercado. Jonathan Coleman and Pythagoras L. Carvalho assisted on corporate matters in London.