TORONTO — Bank of Nova Scotia, already a major force in Latin America, has struck a deal to acquire the parent firm of Costa Rica's largest private bank, for $330-million.
Toronto-based Scotiabank said Tuesday it will acquire Corporacion Interfin and merge its existing subsidiary in the Central American country with Interfin, resulting in a 13 per cent loan market share.
Founded in 1979, Interfin has 24 branches, 36 ABMs and about 950 employees. Scotiabank's combined Costa Rican operation will have about $1.8-billion in assets and $1.1-billion in deposits.
“Scotiabank has deep roots and a long history in Latin America and we are proud to grow our operations in this region, where we have become a leading bank,” CEO Rick Waugh said in a release.
“Acquiring Interfin complements our strategy of investing in high-growth markets where we anticipate increased demand for financial services.”
Luis Liberman, CEO of Interfin, said the Scotiabank deal will keep customers and Interfin employees “in a familiar environment."
Subject to regulatory approval, the transaction is expected to close in about two months.
Scotiabank has operated in Costa Rica since 1995. The bank's subsidiary there has about 300 employees, plus 39 automated banking machines and 17 branches, offering retail, commercial and cash management services.
In Latin America, Scotiabank operates in Mexico, Peru, El Salvador, the Dominican Republic, Puerto Rico, Panama, Belize and Chile, with an affiliate in Venezuela and a representative office in Brazil.
With more than 55,000 employees, Scotiabank Group and its affiliates serve about 10 million customers in some 50 countries around the world and has $357 billion in assets as of April 30.
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