February 14, 2018 / 10:02 PM / 2 years ago

Popular Inc to buy Wells Fargo's Puerto Rico auto finance business for $1.7 billion

(Reuters) - Popular Inc (BPOP.O) said its banking unit, Banco Popular de Puerto Rico, would buy certain assets and debt related to Wells Fargo & Co’s (WFC.N) auto finance business in Puerto Rico for about $1.7 billion.

Banco Popular will buy the assets and debt from Reliable Financial Services Inc and Reliable Finance Holding Company, which are subsidiaries of Wells Fargo.

As part of the deal, Banco Popular will acquire about $1.5 billion in retail auto loans and $340 million in commercial loans. The bank will also acquire certain other assets and assume some liabilities of Reliable.

Banco Popular will fund the all-cash deal, which is expected to close in the second quarter of 2018, with existing liquidity.

Popular’s shares were down 1.3 pct at $40.7 in trading after the bell.

Reporting by Nikhil Subba in Bengaluru; Editing by Arun Koyyur

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