Chile's banking regulator SBIF has authorized Scotiabank Chile to acquire the remaining assets and liabilities of Banco Paris, Banco Paris said in a securities filing Dec. 29.
The agreement between the two banks, which was signed on Dec. 15, will take effect Dec. 31. The terms were not disclosed.
Banco Paris' portfolio is comprised mainly of mortgages worth around 9.5 billion Chilean pesos, as well as other loans totaling 1.1 billion pesos, Pulso reported.
As a result of the deal, Banco Paris, which is a subsidiary of retail group Cencosud, will be dissolved and liquidated. The bank currently has 35 employees, some of whom will be relocated within Cencosud and one remaining branch, which will be closed from Jan. 1, 2017, the publication noted.
In May 2015, Scotiabank's parent, Bank of Nova Scotia, purchased of 51% of Cencosud's financial services business as part of a 15-year strategic alliance, which included Cencosud's credit card portfolio.
As of Dec. 28, US$1 was worth 673.20 Chilean pesos.