Skandinaviska Enskilda Banken AB's (SEB-A. SK) German retail network will be bought by Banco Santander SA (STD), of Spain, for EUR555 million. Santander, with this deal, aims to expand its retail banking services in the largest economy of Europe, which includes mortgages and deposits.

By market value, Santander is the largest bank in the euro zone. With this agreement, it'll be able to twice-fold its German branch network, and it'll become a part of its ongoing thrust into northern Europe, for more growth.

For this bank, Germany will form the core souk. Santander Chairman Emilio Botin said, "This acquisition is a significant step towards achieving our goal of being a full-service retail bank in Europe's largest market".

In Germany, Santander holds a 14% market share, and it has always been a vigorous player in the country's consumer finance, even though it does not offers mortgages and deposits. This new deal will consummate by the end of this year, or maximum, by the start of next year.

Carlos Peixoto, an Analyst at Portuguese Investment Bank BPI, that has bought ratings on Santander, said that the Company is taking a full advantage of the selling mood among the banks in Europe; and that, now is a good time to gain exposure to Germany.