The transaction between Popular Auto and Wells Fargo Auto is officially complete and Popular will gain $1.6 billion auto loans from the lenders Puerto Rico portfolio, the companies announced in a press release.
Popular Auto cleared regulatory hurdles to purchase the assets of Reliable Financial Services, the Puerto Rico subsidiary of Wells Fargo, in July. These assets consist of $1.6 billion auto loans in addition to $360 million auto-related commercial loans.
The deal is expected to drive $36 million of net income for the first 12 months after closing, according to the release.
Wells Fargo Auto will retain approximately $385 million auto loans as a part of the transaction and has entered a loan servicing agreement with Popular. Reliable will continue operations parallel to Popular for a period of time to help facilitate the transition.
Popular will also be acquiring all 400 of Reliable’s employees.