UPDATE 1-Santander Mexico to buy ING mortgage business
* Santander Mexico to pay about $50 mln for mortgage portfolio
* Portfolio includes about 12.3 bln pesos in mortgages
June 14 (Reuters) - The Mexican unit of Spanish bank Santander said on Friday it will buy Dutch bank ING's mortgage business in Mexico to become the country's second-biggest provider of home loans.
Santander Mexico, Mexico's No. 3 bank, will pay 643 million Mexican pesos ($50.70 million) in cash for the 12.3 billion peso mortgage book, according to a statement.
The deal is expected to close in the second half of the year, pending regulatory approvals, Santander said.
Santander Mexico had a loan portfolio worth 353 billion pesos at the end of April, the fourth largest in Mexico, according to data from Mexico's banking regulator.
The deal will make Santander Mexico the country's second-largest mortgage provider, Chief Executive Marcos Martinez said in the statement.
ING, bailed out by the Dutch state in 2008, is shedding its insurance, investment management and other assets through disposals or listings and is cutting thousands of jobs to repay state aid and bolster its capital.
Santander Mexico listed 25 percent of its shares in a record offering on Mexico's stock exchange in September.
Santander Mexico shares closed down 0.08 percent at 38.36 pesos on Friday.