Scotiabank has completed its $2.2bn (C$2.9bn) acquisition of Spanish lender Banco Bilbao Vizcaya Argentaria’s stake of 68.19% in Banco Bilbao Vizcaya Argentaria, Chile (BBVA Chile).
The acquisition, which was announced in late 2017, was wrapped up after receipt of approvals from the Chilean and Canadian regulatory bodies.
It was made with the intention to merge BBVA Chile with the existing operations of Scotiabank in Chile, which is operated under the name - Scotiabank Chile.
Scotiabank believes that the acquisition will help grow its footprint in the Chilean market and in the Pacific Alliance countries. It is also expected to double the Canadian multinational bank’s presence in Chile to about 14% market share in total loans, thereby turning it into one of the largest private banks in the Southern American country.
Scotiabank said that having completed the transaction, it will now initiate the integration efforts led by local resources in Chile with the next milestone in the process to be the merger of BBVA Chile into Scotiabank Chile.
The merger of the two banks is subject to an approval from the Superintendent of Banks and Financial Institutions (SBIF) in Chile, said Scotiabank.
In another development, the Canadian banking group said that it has made an agreement with the Said family to continue as an investor in BBVA Chile and to take part in the merger of the two Chilean banks.
The Said family, which holds a stake of 31.62% of BBVA Chile, will be offered a stake of nearly 25% in the merged bank, said Scotiabank.
Earlier this month, the Canadian bank completed its previously announced acquisition of Citibank Colombia's consumer (retail and credit cards) and small and medium enterprise (SME) operations for an undisclosed
