FI showroom red and grey logo
MenuMENU
SearchSEARCH

Santander to Acquire Canadian Auto Finance Company

Banco Santander has reached an agreement with Carfinco to acquire its Canadian business for $298 million Canadian dollars. Under the agreement, a new company will be formed in which Santander will own approximately 95% of the equity, while top management of Carfinco will retain 5%.

by Staff
September 16, 2014
2 min to read


MADRID, Spain —Banco Santander has reached an agreement with the auto financing company Carfinco to acquire its Canadian business for $298 million Canadian dollars (CAD), approximately 210 million euros.

Carfinco is headquartered in Edmonton, Alberta, and operates in all 10 Canadian provinces. Its products are distributed through a network of 2,200 dealers, and the company has a geographically diverse loan portfolio of CAD $278 million and 29,500 customers as of June 2014.

Ad Loading...

Santander will pay CAD $11.25 in cash per share, representing a premium to shareholders of 32% above the volume-weighted average price over the last 90 trading days. As part of the agreement, Carfinco will also pay a special dividend to shareholders on the closing date. Carfinco’s board of directors has approved the transaction and will recommend that shareholders vote in favor.

“We are excited to sign this agreement with Carfinco, which allows us to enter a market with good growth potential such as Canada, where we hope to reach agreements with other car manufacturers like those we have signed in other countries,” said Juan Rodriguez Inciarte, senior executive vice president and head of Strategy at Banco Santander.

Under the transaction’s structure, a new company will be formed in which Santander will own approximately 95% of the equity, while top management of Carfinco, including the president and CEO, will retain the remaining 5% and will maintain their management roles.

“We are delighted with the value this all cash offer of $11.25 per share brings to our shareholders and this agreement with one of the top banks in the world, which will bring to the Canadian market their knowledge, experience and relationships in the auto finance industry,” said Tracy Graf, president and CEO of Carfinco.

Graf and other key executives will bring to Santander their experience and knowledge of the Canadian market to contribute to the future growth of the company, which registered an attributable profit of CAD $20.2 million in 2013.

Ad Loading...

Prior to the closing of the transaction, Carfinco will sell its subsidiary Persian Acceptance Corp., which develops the same activity in the United States.

More Auto Finance

Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Auto Financeby Hannah MitchellFebruary 11, 2026

Auto Credit More Plentiful

Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.

Read More →
Auto Financeby Hannah MitchellJanuary 27, 2026

Auto Loans Long as Stretch Limos

More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.

Read More →
Ad Loading...
A person holds a stack of cash with a small red toy car on top.
Auto Financeby StaffJanuary 20, 2026

AutoPayPlus Launches RePayPlus

The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.

Read More →
F&Iby Hannah MitchellJanuary 12, 2026

Auto Credit Access Loosens

December brought some of the best borrowing availability for consumers in years, though lenders tightened their reins on riskier segments of the market.

Read More →
A hand holding small burlap money bags next to a toy red car, symbolizing auto financing, loan payments, and dealership profitability.
Industryby StaffNovember 14, 2025

Report Uncovers $4.7B Opportunity for Auto Dealers

Solving mismatched payment quotes can boost sales, profits

Read More →
Ad Loading...
Industryby Hannah MitchellNovember 10, 2025

Auto Loans More in Reach

October easier to tap despite approval rates falling

Read More →
Industryby Hannah MitchellNovember 3, 2025

Q3 Auto Loans Reveal Stress

Data reflect growing finance activity on the extreme ends of credit risk scale

Read More →
Industryby Hannah MitchellOctober 15, 2025

Debt-Strapped Auto Consumers on the Rise

The amounts owed on under-water trade-ins reach new highs.

Read More →
Ad Loading...
F&Iby Hannah MitchellOctober 10, 2025

Helping the Credit-Crunched

Though many auto consumers are finding it challenging to trade, dealers can leverage conditions to help them get over the hump.

Read More →