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BBVA Chile integration to cost Scotiabank up to C$280M

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BBVA Chile integration to cost Scotiabank up to C$280M

Bank of Nova Scotia expects to spend up to C$280 million for the merger of Banco Bilbao Vizcaya Argentaria Chile SA and its local subsidiary, Scotiabank Chile, Gestión reported.

The Canada-based bank provided the estimate after disclosing that Banco Bilbao Vizcaya Argentaria SA accepted its offer to acquire the Spanish lender's 68.19% stake in BBVA Chile for about US$2.2 billion.

The merger between the two Chilean entities is expected to double Scotiabank's market share in the country to approximately 14%.

The integration costs will fall between C$260 million and C$280 million before taxes and will be incurred mostly in the first and second year, Scotiabank said. The forecast pretax cost savings is expected to fall between C$150 million and C$180 million per year.

In a conference call with analysts, Scotiabank CEO Brian Porter said he expects the deal to close in June 2018.