Scotiabank continues to expand its footprint in Latin America, with a plan to acquire a 51 per cent controlling interest Peru’s Banco Cencosud for approximately $130 million.
The agreement, which is subject to regulatory approval, will make Scotiabank the second-largest credit card issuer in the South American country.
The deal will see the two companies enter into a 15-year partnership to manage the credit card business and “provide additional products and services to customers,” according to a Scotiabank statement.
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The company says Cencosud is the second largest supermarket and fourth largest department store chain in Peru, and its banking branch has more than 315,000 clients.
Scotiabank first established a presence in Peru in 1997, and it now has more than 10,000 employees across 310 branches in the country.
The company operates in 11 countries across Latin America, with a particular focus on Mexico, Peru, Chile and Colombia.
In January, the lender announced a deal to buy Citibank’s consumer and small and medium enterprise operations in Colombia for an undisclosed amount.
In December, Scotiabank said it had secured a deal to buy a 68-per-cent stake in a Chilean banking operation, BBVA Chile, for $2.9-billion.