Banco Santander (SAN.MC) launched a voluntary exchange offer to acquire the remaining 10% of its Brazilian subsidiary.
The bid represents a 15% premium over the reference share price.
Total consideration for the transaction reaches up to €1.908 billion.
Santander will issue new shares representing up to 1.1% of its current capital to fulfill the offer.
The bank expects the transaction to be accretive to earnings per share.
This move underscores Santander's confidence in the Brazilian market.
Santander Brazil will remain a listed company on the São Paulo stock exchange.