Business

Santander absorbing 2 subsidiaries

Santander owns 90 percent of Banesto, once a top Spanish bank. In the United States, it owns Sovereign.

Andrea Comas/Reuters

Santander owns 90 percent of Banesto, once a top Spanish bank. In the United States, it owns Sovereign.

MADRID — Spain’s Banco Santander, the biggest bank by market value in the 17-country eurozone, said Monday that it will absorb two subsidiaries, Banesto and Banif, leading to job cuts and branch closings.

The move is part of a broader restructuring of Spain’s fragile financial system, which was hit hard by the collapse of the property market in 2008. The government is pushing for mergers and takeovers to create fewer but sturdier banks.

Advertisement

Santander’s fusion, to be completed in May, will save money through the integration of services and the closing of 700 branches, Santander said.

It said it would reduce staff gradually but gave no figures as to how many people it would let go.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

Banco Santander SA owns some 90 percent of Banesto, which was once one of Spain’s top banks.

Santander acquired the private bank Banif after it merged with Banco Central Hispano in 1999.

Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.
We hope you've enjoyed your free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com