Santander Holdings USA (SHUSA) has signed a definitive agreement to acquire the remaining stake in its US-based consumer unit.

Under the terms, SHUSA will acquire all outstanding shares of common stock of Santander Consumer USA Holdings (SC) that it does not already own for $41.50 per share.

According to a Reuters report, the deal is expected to be valued at around $2.5bn.

SHUSA currently holds around 80% of SC’s outstanding shares of common stock.

The move comes more than a month after SHUSA submitted a non-binding proposal to acquire the remaining 20% shares of SC. However, the agreed offer represents a 6.4% increase from the last month’s proposal.

The transaction is expected to close by late October or some time in the fourth quarter of 2021. The completion is subject to customary closing conditions including regulatory approval.

As agreed, a wholly owned subsidiary of SHUSA will be merged with and into SC. Subsequently, SC will operate as a wholly owned subsidiary of SHUSA.

Headquartered in Dallas, SC a full-service consumer finance company offering vehicle finance and third-party servicing.

On 30 June 2021, SC had an average managed asset portfolio of around $64bn.

In a statement, SHUSA said that the deal is expected to immediately contribute to its parent company’s earnings.

SHUSA is a wholly-owned subsidiary of Madrid-based Banco Santander. SHUSA parent organisation of five financial companies.