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Scotiabank to buy BBVA Chile for $2.2bn

BBR Staff Writer Published 05 December 2017

Canada-based Scotiabank has agreed to purchase 68.19% stake in BBVA Chile from Banco Bilbao Vizcaya Argentaria (BBVA) for around $2.2bn.

Subject to regulatory approvals, Scotiabank is planning to merge BBVA Chile with its existing operations in Chile (Scotiabank Chile).

The Said family, which holds 31.62% of BBVA Chile, has gave up its right of first refusal to purchase BBVA's shares of BBVA Chile. The family holds right to tender all or a portion of its shares in the mandatory tender offer to be carried out by Scotiabank.

In addition, the Said family is planning to invest up to $500m to acquire 25% of the combined business, when Scotiabank Chile and BBVA Chile are merged.

BBVA is a multinational Spanish banking group, which was formed through a merger of Banco Bilbao Vizcaya and Argentaria

Scotiabank provides financial services in North America, Latin America, the Caribbean and Central America, and Asia-Pacific.

The bank offers a range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking and capital markets.

Scotiabank president and CEO Brian Porter said: "We are pleased to have reached an agreement with BBVA to acquire their shares of BBVA Chile.  We look forward to a partnership with the Said family and to build a better bank in Chile.

“BBVA Chile has a proven track record of providing leading financial products and services to customers across the country and this transaction demonstrates excellent synergy between both banks with customer-centric cultures."

Image: BBVA head-office building in Bilbao. Photo: courtesy of Zarateman/Wikipedia.