Banco Santander Shares Surge 1.30% on Regulatory Approval of Erste Group's Polish Stake Deal

The share price of Banco Santander rose to its highest level so far this month, climbing 1.30% intraday on Dec. 18, as investors reacted to regulatory approval of a landmark deal involving its Polish operations. The move follows Poland’s financial regulator greenlighting Erste Group Bank AG’s acquisition of a 49% controlling stake in Santander Bank Polska, removing the last major hurdle for the €7 billion transaction.

The approval of Erste Group’s purchase marks a pivotal step in Santander’s strategy to divest non-core assets, with the Spanish lender set to offload its remaining 13% stake to equity investors.

The deal, which avoids a mandatory takeover bid by staying below the 50% threshold, is expected to boost liquidity in the Polish unit’s shares. Erste has allocated €200 million for integration costs, signaling confidence in expanding its footprint in Central and Eastern Europe’s most competitive banking market. The transaction also underscores Santander’s focus on streamlining operations amid broader industry consolidation.

Poland’s banking sector remains a strategic battleground, with rivals like Commerzbank and UniCredit vying for market share. While regulatory rate cuts and foreign currency loan challenges pose short-term risks, the long-term outlook for the market remains resilient. Santander’s exit from Poland reflects a broader trend of European banks retrenching in high-cost regions to prioritize core markets. The success of Erste’s integration of Santander Bank Polska under new CEO Peter Bosek will be critical in determining the deal’s impact on both institutions’ valuations, as investors weigh strategic clarity against regional economic uncertainties.