MADRID (Reuters) – Spain’s largest lender Banco Santander said on Monday it will pay almost 1 billion euros ($1.1 billion) to end an agreement between Allianz and Banco Popular over the distribution of insurance products.

Banco Popular, saddled with debt, became the first bank to be wound down using new European rules aimed at avoiding taxpayer funded bailouts and was sold to Santander for a nominal one euro in June 2017.

Santander agreed to pay 936.5 million euros ($1.07 billion)for Allianz Group’s 60% stake in Allianz Popular which distributed insurance products for Banco Popular in Spain.

Allianz Popular owned life insurance group Allianz Popular Vida, asset management group Allianz Popular Asset Management and Allianz Popular Pensiones.

The agreement, which concludes the reorganization of the Spanish insurance, asset management and pension plan businesses following the Popular acquisition, would reduce Santander’s fully-loaded CET1 capital by around 8 basis points, the bank said.

The agreement is expected to be terminated in the first quarter of 2020 subject to permission from the regulatory and anti-trust authorities.

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