Banco Santander, the Spanish banking giant, is buying back stock that it once sold to Bank Of America. Banco Santander, which is the third largest financial group in Mexico, is buying back Grupo Financiero Santander — at the low, low cost of $2.5 billion. The buy-back will allow the bank to regain a 24.9 percent stake that it once had with Bank of America, and position it to grow and do more business in Mexico.

With its home market experiencing a deep recession, Santander's international operations, especially in Latin America, have become a key driver of growth. Analysts had previously flagged an acquisition of the Bank of America stake as the most likely way Santander could grow in Mexico.

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