Four months after announcing it had agreed to acquire Wells Fargo’s auto finance business in Puerto Rico, which operates as Reliable Financial Services Inc., Banco Popular de Puerto Rico confirmed it has filed a notice with the Federal Reserve System to close the deal.
The filing occurred May 31, when Banco Popular sought permission for Popular Auto, LLC, it’s direct, wholly-owned subsidiary, to “consummate the transaction.”
“Although there can be no guarantee that regulatory approval will be received, we now anticipate that the transaction will close during the third quarter of 2018,” bank executives said.
As this media outlet reported, in February, Banco Popular de Puerto Rico disclosed its intention of picking up Reliable Financial Services Inc. and Reliable Finance Holding Company, for $1.7 billion.
As part of the transaction, Banco Popular will acquire approximately $1.5 billion in retail auto loans and $340 million in commercial loans.
The acquired auto loan portfolio has credit characteristics that are similar to Banco Popular’s existing self-originated portfolio. Banco Popular will also acquire certain other assets and assume certain liabilities of Reliable.