NEW YORK (
American International Group
, always the melting pot, is uniting Poland and Spain.
The flailing insurer said on Wednesday that it will combine its consumer-finance business in Poland with that of Spanish bank Santander.
The Polish operation, which is conducted through AIG Bank Polska, will fold it into the Polish consumer-finance unit of Santander Consumer Finance, which is conducted through Santander Consumer Bank. As a result, the insurer will receive a 30% equity interest in SCB.
Once the deal is closed, all of AIG's intercompany debt facilities tied to these entities will be repaid and the company will no longer be responsible for funding the combined consumer-finance businesses.
Specific terms of the deal were not disclosed.
-Reported by Jeanine Poggi in New York.
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