Santander has agreed to a €7bn deal to sell a 49% stake in its Polish banking subsidiary to Erste Group, as part of its strategy to reduce retail banking exposure in Poland, where it plans to allocate €3.2bn of the proceeds for share buybacks. Despite retaining a 13% stake, this sale significantly decreases Santander’s presence in a market that offers limited connections to its core regions. Erste aims to enhance its position as the third-largest bank in Poland, increasing its customer base in Central and Eastern Europe from 17 million to 23 million, while also acquiring a 50% stake in a Polish asset management firm for €200 million.
