Popular’s banking subsidiary Banco Popular de Puerto Rico (Banco Popular) has agreed to acquire certain assets and liabilities of Wells Fargo’s business in Puerto Rico for nearly $1.7bn.

The transaction, that comprises Wells Fargo’s auto finance business and other assets, will be carried out with Reliable Financial Services and Reliable Finance Holding Company, the subsidiaries of Wells Fargo & Company.

Under the terms of the acquisition, Banco Popular will acquire Wells Fargo’s $1.5bn in retail auto loans and $340m in commercial loans.

Banco Popular will also purchase certain other assets and assume specific liabilities of Reliable.

Popular CEO Ignacio Alvarez said: “Even in this period of significant uncertainty, Popular continues to believe and invest in the future of Puerto Rico.

“We are proud to welcome Reliable’s team to Popular, a seasoned team that strongly complements our own.”

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Banco Popular is planning to fund the deal with existing liquidity.

The transaction, subject to customary closing conditions excluding any further regulatory approvals, is expected to close in the second quarter of this year.

After the completion, the Reliable employees will be absorbed into Banco Popular.

Reliable president and CEO José Arbona said: “We are enthusiastic about this transaction since we are confident that it will be positive for Puerto Rico and particularly for the auto industry.

“Our customers can be certain that we will continue working with the same drive and dedication as we have done in the past.”

However, Reliable will continue to operate independently as a division of Banco Popular for a time period after closing to ensure continuity of service to Reliable customers.