Scotia Seals Chile Bank Deal

As expected, following exclusive talks on the asset, Scotiabank has agreed to take 79% of Chile’s Banco del Desarrollo for $810m and intends to buy more. The stake will be purchased from Sociedad de Inversiones Norte Sur, a Chilean investment firm that holds 39%, Credit Agricole with 24% and Intesa Sanpaolo which has 16%. The agreement includes provisions to adjust the price based on due diligence. “As required by local rules, Scotiabank will be making a public share offering on the same terms and expects to acquire up to 100% of Banco del Desarrollo, which would be valued at $1.03bn,” says Scotia. “This is a unique opportunity to increase our market penetration in one of the most developed and attractive markets in Latin America,” says Rick Waugh, Scotia president and CEO. He adds that Chile has “scarce assets available for purchase.”