Scotiabank has announced that it has submitted an offer to acquire Banco Bilbao Vizcaya Argentaria S.A’s (BBVA) 68.19% stake in BBVA Chile, upon the condition that the Said family that own a $31.62% stake do not exercise the Right of First Refusal.
If successful, the transaction will see BBVA receiving CAD$2.9bn (USD$2.2bn) to part way with its Chilean assets, including certain subsidiaries.
The attempted acquisition is in line with Scotiabank’s aim to increase its influence within the Chilean market. If successful, the Canadian bank will over double its current market share to approximately 14%, making it the third largest non-state-owned bank within the country.
Currently, Scotiabank Chile owns $26bn in total assets, with 3,700 employees across 89 branches, whilst BBVA Chile has $29bn in assets, with 4,000 workers operating its 127 branches.
The news of Scotiabank’s planned expansion comes at the same time as the release of its Q4 Results, showing strong performance with a 4% increase in its earnings throughout the quarter.
The bank reported earnings of C$1.64 per share in the quarter, up from the C$1.57 recorded over a year ago. However, despite positive results, the bank missed its forecast earnings that expected C$1.66 per share.