Santander sharpens focus on auto financing in Chile

Chile-headquartered vehicle distribution and retail group SKBergé has agreed to sell its stake in car financing firm Santander Consumer Chile to the Spanish banking giant's local unit.

Santander Chile will pay around 59.063bn pesos (US$86.6mn) for SKBergé's 49% share, a statement said.

Parent Santander controls the balance.

"The final outcome of the operation will depend on the conclusion of the contractual agreements and the time it takes to achieve the necessary regulatory authorizations," Santander Chile said in a statement.

Sales of light vehicles in Chile hit a record high last year. The tally grew 16% to 417,038 - making 2018 the strongest year for the sector since local motor industry chamber Anac's records began.

At the end of last year, Santander Consumer Chile was the second biggest player in the financing market for new cars with a share of 8.2% .Its loan book stood at 388bn pesos. For 2018, the company reported a net profit of 10.996bn pesos.

The company was founded in 2007 by Santander (89%) and SKBergé (11%). In 2011, SKBergé increased its stake to 49%

SKBergé is also present in Argentina and Colombia as well as in Peru, where it also works in partnership with Santander. In Chile, where it began operations in 1986, the company represents marques including Fiat, Ferrari, Jeep, Dodge, Tata, and Chery. SKBergé is a business alliance between Chilean group Sigdo Koppers and Spanish automotive and logistics group Bergé.