Banco Santander Buys Back Stake in Mexico Subsidiary From BofA

Banco Santander is repurchasing a 24.9% stake in its Mexico operations from Bank of America (BAC), paying $2.5 billion to take back nearly all of the shares that it doesn't already own, the Spanish bank announced Wednesday.

Back in 2003, Banco Santander sold the stake in Santander Mexico to Bank of America for $1.6 billion. Seven years later, Santander, the third-largest financial institution in Mexico based on lending and deposit volume, is paying 56% more to get it back.

"This acquisition reinforces Santander's commitment to Mexico, a country with a very positive outlook for growth, and furthers the geographic diversification of our Group," said Banco Santander Chairman Emilio Botin (pictured) in a statement.

The deal, which is expected to close within the next 90 days, is expected to bring the bank's ownership in Santander Mexico up to 99%.