Hogan Lovells advises CNP Assurances on the acquisition of a majority stake in the insurance sudsidiaries of Banco Santander and the entering into a strategic partnership

Hogan Lovells has advised CNP Assurances in relation to the acquisition of a 51% stake in the shareholding of the Irish based life and non-life insurance subsidiaries of the Banco Santander Group and the entering into a long-term strategic partnership with Santander Consumer Finance.

The transaction, which values the three companies at 568 million euros, amounts to 290 million euros and may be adjusted upwards or downwards based on the financial performance observed in the following years. It is expected to close by year end 2014, subject to regulatory approvals.

The transaction includes the entering into a long-term exclusive distribution agreement relating to all life risk insurance products (notably payment protection insurance (PPI)), covering a perimeter of 10 European countries where Santander Consumer Finance enjoys leading market positions: Germany, Poland, Spain, Italy, Austria, Portugal, Norway, Sweden, Denmark and Finland.

The CNP Assurances Group thus implements its strategic priority development in life risk insurance in Europe and achieves immediate scale in several European markets with strong fundamentals.

The Hogan Lovells team acting for CNP Assurances was led by Sébastien Gros, Paris Corporate partner heading the French Financial Institutions Group and Stéphane Huten, Paris Corporate/ M&A partner, assisted by Sophie Thomazi, counsel, Ghina Farah and Thomas Saint-Loubert-Bié, associates, Pierre de Montalembert, partner, and Charles Saumon, senior associate, for the competition law aspects.

Throughout the project Hogan Lovells worked closely with Arthur Cox in Dublin in relation to the Irish aspects of the project.