CCB, Santander to form $100 mln financing arm -source

BEIJING, Jan 26 (Reuters) - China Construction Bank 0939.HK601939.SS (CCB) plans to form a $100 million auto financing unit with Banco Santander SAN.MC to tap into the rapidly growing car market in China, a CCB source said on Tuesday. CCB, the second largest lender in China, and Santander will each hold a 50 percent stake in the joint venture, according to the source, who declined to be named because he was not authorized to speak to media.

Reuters reported earlier this month that CCB and Santander, Europe’s second-largest bank, planned to form an auto financing unit and rural banking venture, marking the Spanish bank’s first foray into China.

A CCB public relations official declined to comment.

The financing JVs are still awaiting government approval.

(Reporting by Xie Heng, Michael Wei and Simon Rabinovitch; Editing by Ken Wills)

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