Santander says to base asset management arm in London

LONDON, June 20 Thu Jun 20, 2013 6:13am EDT

LONDON, June 20 (Reuters) - Spain's Santander confirmed on Thursday it would base its global asset management business in London, following last month's deal to sell half the business and team up with private equity partners.

Britain's finance minister George Osborne had told bankers in a speech on Wednesday evening that London had been chosen as the hub for the asset investment arm, much of which is currently based in Madrid.

The bank confirmed that plan, but did not have further details.

Santander agreed in May to sell a 50 percent stake in the asset management arm to U.S. private equity firms Warburg Pincus and General Atlantic LLC. The business has 600 staff mostly in Europe and Latin America.

Santander booked a 700 million euro net profit from the deal, which valued Santander Asset Management at 2.05 billion euros and brings together 11 asset management companies.

It said the deal would also provide financial backing to expand the asset management business outside of Europe and Latin America, where most of its 152 billion euros of assets currently under management are located.