Santander to buy broker Amherst in US fixed income push

New York

BANCO Santander's US unit has agreed to buy Amherst Pierpont Securities in a deal that gives Spain's biggest bank a greater presence in the fixed income trading business that's been a boon to Wall Street rivals over the past year.

Santander Holdings USA is acquiring the independent broker-dealer through a US$600 million takeover of its parent company, Pierpont Capital Holdings, according to a statement on Thursday. Amherst Pierpont was designated a primary dealer of US Treasuries by the Federal Reserve Bank of New York in 2019, and is one of only three non-banks with that de-signation.

The move pushes Santander further into the American market, while Spanish rival Banco Bilbao Vizcaya Argentaria agreed last year to sell its US business to PNC Financial Services Group. Santander also increased its stake in its US consumer business last year.

A surge in fixed income trading over the past year has helped large US banks weather the pandemic.

New York-based Amherst Pierpont, which has offices in Hong Kong, Chicago, San Francisco and Austin, Texas, has about 230 employees serving more than 1,300 institutional clients. BLOOMBERG