Scotiabank has announced it will enter the Colombian retail banking market through the acquisition of 51% of Banco Colpatria for $1 billion, according to a company news release.
Canada’s Scotiabank said it will pay $500 million and 10 million common shares in the capital of the Bank of Nova Scotia in exchange for 51% of the common shares of Banco Colpatria to become majority shareholder.
The deal is worth approximately $1 billion and is subject to regulatory approval. Scotia Bank is planning to combine its wholesale business in Colombia in to Colpatria’s exiting operations.
Rick Waugh, president and CEO of Scotiabank said, “We look forward to the success we will achieve by combining the unique strengths of our two companies and focusing on our future growth in Colombia.”
Eduardo Pacheco, president of Mercantil Colpatria said, “With this alliance, we bring together our strengths and Scotiabank’s expertise in risk and capital management, wholesale banking operations and solid network in Central and South America.”
Banco Colpatria is the fifth largest bank in Colombia with assets of $6.2 billion and deposits of $4.2 billion. Scotiabank, with assets of more than $567 billion, also operates in Peru, Chile, Brazil, Panama, and Venezuela.