Scotiabank Perú SAA, the Peruvian subsidiary of Canada-based Bank of Nova Scotia, agreed to acquire a 51% controlling interest in Lima-based Banco Cencosud SA for approximately C$130 million.
As part of the deal, the two Lima, Peru-based companies will enter into a 15-year partnership to manage the credit card business and provide additional products and services to customers. Scotiabank has similar partnership arrangements with Cencosud SA, Banco Cencosud's ultimate parent, in Chile and Colombia.
The terms of the transaction are not financially material to Scotiabank. The agreement is subject to regulatory approval.
Banco Cencosud offers credit cards and consumer loans in Peru. It has over 315,000 active clients and around C$240 million in outstanding loans in Peru.
As of March 31, Banco Cencosud has assets of 855.6 million Peruvian soles, according to S&P Global Market Intelligence data. Scotiabank Perú's assets totaled 60.79 billion soles as of Dec. 31, 2017.
As of May 9, US$1 was equivalent to 3.29 Peruvian soles.
