In accordance to the terms of the deal, Anchor Fund and Linzor Capital Partners, which own minority stakes in Colfondos, have agreed to dispose their stakes to Scotiabank.
The deal will further boost Scotiabank penetration in Colombia, as it will be benefited with Colfondos’ presence to 27 offices in 20 cities across Colombia and 1,200 employees, with $9.25bn assets under management.
Terms and conditions have not been finalized, but upon completion of the transaction, Mercantil Colpatria will retain 49% stake in the firm.
Scotiabank group head of global wealth management Chris Hodgson said expanding global wealth management’s footprint in Latin America is a strategic priority for Scotiabank and the acquisition of a majority stake in Colfondos will increase its regional presence in this segment.
"Colfondos has achieved a great deal of success and, with our partners at Mercantil Colpatria, we look to continue the growth and expansion of this business," Hodgson added.
Scotiabank manages its operations in 13 countries in Central and South America such as Peru, Chile, Panama, Brazil, Uruguay, Costa Rica, Guatemala, Colombia, El Salvador, Guyana, Nicaragua, Belize and Venezuela.
With assets of $660bn, as at 30 April 2012, Scotiabank serves approximately 19 million customers in more than 55 countries around the world and provides personal, commercial, corporate and investment banking.
