Scotiabank has announced that it has completed the acquisition of a 51% stake in Colfondos AFP, the fourth largest pension fund company in Colombia.
The remaining 49% of the firm remains in the hands of Mercantil Colpatria.
Earlier this year Scotiabank announced the closing of its acquisition of 51% of Banco Colpatria. Through this long-term partnership with Mercantil Colpatria, who retains 48.7 per cent ownership, Scotiabank will participate in significant growth opportunities in Colombia. The purchase will be satisfied through a combination of U.S.$500 million in cash and 10,000,000 common shares of The Bank of Nova Scotia.
Colpatria Group is the fifth largest banking group in Colombia in terms of loans and the sixth in terms of deposits in the country, and serves both individuals and the business sector. It has a presence in 31 cities, assets of U.S.$6.4 billion, a network of 175 offices and 308 ATMs. It is the second largest issuer of credit cards using both its own and shared brands.
The terms of the Colfondos transaction have not been disclosed, and have been described as not financially material.
Chris Hodgson, Scotiabank’s Group Head of Global Wealth Management, stated that growth in Latin America was a strategic priority for Global Wealth Management.
Hodgson added that the firm had chosen Colfondos based on its scale and its history of success.
Colfondos has US$9.7 billion worth of assets under management, and has 27 offices in 20 cities across Colombia.
Scotiabank’s latest acquisition follows that of Mexican firm Crédito Familiar, reported earlier this month.
