Chile: BBVA Chile and Scotiabank merger process moving forward

Canadian bank Scotiabank  made a binding offer this week to take control of BBVA Chile and launch a takeover bid for 100% of the institution’s shares. In its offer, The Bank of Nova Scotia valued 68.19% of the shares held by BBVA at US$2.2 billion, which would imply a market value of US$3.2 billion for the entire bank.

The purchase of BBVA will allow the bank to double its market share in Chile, reaching approximately 14% and turning Scotiabank into the third largest non-state bank in the country. Together, BBVA and Scotiabank account for more than 575,500 customers, 217 offices and 7,195 staff, according to data from the Superintendency of Banks and Financial Institutions (SBIF).

One factor that could put additional pressure on the operation is how fast the SBIF is in filing its reports. However, experts rule out that this agency may delay the process, because it is an operation between shareholders well-known in Chile who have been operating in the local market for years. In fact, the SBIF has repeatedly stated that the operation signals that the Chilean market is always well regarded from abroad due to its solidity, which is why operations of this type are normal. Nor is it likely that the National Economic Prosecutor’s Office will investigate the operation because of the size of the new merged company, experts say, which would be smaller than banks such as Banco Chile and Santander.

Full Content: Economia y Negocios

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.