Despite the ever-dawdling and presently unnerving Spanish economy, Banco Santander
The Spanish giant has offered 16.6 billion zloty ($5.7 billion) to acquire a 100% stake in the Polish bank, which until now had been controlled by wayward Irish bank Allied Irish Banks
Polish vehicle to success
Right now, Santander holds a strong footing in fast-growing Brazil and austere-but-stodgy Britain -- two crucial areas from which to grow larger. This new acquisition should enable the bank to penetrate further into other markets in the long term. In the short term, it gets Santander into Poland, Eastern Europe's biggest market.
After striking deals with Royal Bank of Scotland
Patience will pay off
Banco Santander seems to be in the right place at the right time, with fresh capital. Its strategic plans and demonstrative aggression also make it look promising.
Relatively speaking, Eastern Europe is holding up well, and it should be an appealing destination for long-term banking activities. This should be music to Santander shareholders' ears.
However, if you're expecting a high return in a shorter period of time, you may have to wait until the deal finishes its teething period. Large-scale acquisitions like this one take time, and for a while at least, the premium Santander paid for Zachodni's shares may not seem worthwhile. But in time, thanks to a few smart acquisitions today, I suspect we'll see Santander join the ranks of other global banking giants.