According to the Spanish bank, the deal will see Santanderâs current consumer banking business in Germany doubling in size.
SEBâs network features 173 outlets and services a total of one million customers, the financial institution explained.
Emilio BotÃn, Santander chairman, said: âGermany is a core market for Santander. This acquisition is a significant step toward achieving our goal of being a full-service retail bank in Europeâs largest market.â
The deal is due to be completed at some stage in 2011, subject to approval from financial industry regulators.
Santander already has a presence in Germany, with its Consumer Bank division owning a 14 per cent market share in the nation state.
The takeover will provide the bank with â¬4.6 billion in deposits and â¬8.5 billion worth of loans, of which more than 80 per cent are related to mortgages.
Santander Consumer Bank is currently the sixth largest bank in Germany by profit after it contributed â¬385 million to the Santander Groupâs overall financial results in 2009.
By Jim Ottewill