TORONTO (Bloomberg) -- Banco Santander SA, Spain's biggest bank, agreed to buy Canadian car-financing company Carfinco Financial Group Inc. for about $269 million.
The Spanish bank will own about 95 percent of the new company that will be formed after the transaction is completed.
Carfinco executives, including President and CEO Tracy Graf, will retain 5 percent and maintain their management roles, according to Santander.
"We are excited to sign this agreement with Carfinco, which allows us to enter a market with good growth potential such as Canada, where we hope to reach agreements with other car manufacturers like those we have signed in other countries," said Juan Rodriguez Inciarte, senior executive vice president and head of strategy at Banco Santander.
Santander said it expects to complete the transaction in the second half of this year, pending regulatory approval.
The impact of the purchase is "not significant" on the group's shareholder equity, according to the statement.