Colombia's Banco Colpatria Multibanca Colpatria SA has signed an agreement to acquire Citibank - Colombia SA's consumer business and small and medium enterprise operations.
According to a Jan. 31 statement, Bank of Nova Scotia, the parent of Banco Colpatria, said the deal, which is subject to regulatory approval, was made to boost the strategic position of the Colombian subsidiary, including making it the market-leader in credit cards. The Canadian bank did not disclose details of the transaction.
The deal sees Scotiabank and minority shareholder Mercantil Colpatria S.A. invest proportionately to maintain their existing ownership levels in Banco Colpatria, the statement noted.
According to Nacho Deschamps, Group Head of International Banking and Digital Transformation at Scotiabank, the acquisition is in line with the Canadian banking group's "strategy to increase scale within the Colombian banking sector, as well as the other Pacific Alliance economies of Mexico, Chile and Peru."
Scotiabank has been expanding its presence recently in Latin America. In December 2017, Banco Bilbao Vizcaya Argentaria SA accepted its offer to acquire the Spanish lender's 68.19% ownership in Banco Bilbao Vizcaya Argentaria Chile SA. The transaction will double Scotiabank's market share in Chile to approximately 14%.
Citigroup Inc., meanwhile, has been decreasing its presence in the region, having sold its Argentine and Brazilian retail business in 2016. Citi said in the deal statement, however, that it plans to maintain its operations in Colombia with a sharper focus on corporate and institutional clients.
