Santander (B): The Acquisition of Abbey

This case analyzes Santander's offer for British commercial bank Abbey in late 2004. This offer would allow Santander to grow beyond Latin America and Spain and enter Europe’s most profitable, but also most competitive banking market. It was the first acquisition ever by a Spanish company in the UK. The case looks at the various challenges this large-scale transaction was posing to Santander, as Abbey was undergoing a painful restructuring process.

The case provides a unique persepctive to: 1) Assessment of an acquisition, with a special focus on the strategic rationale. 2) Assessment of a post merger integration issues against the background of the buyer?s prior international development. 3) Business strategy and the sources for achieving competitive advantage in financial services. 4) Discussion of value creation levers, deal synergies and corporate restructuring.