Scotiabank Reaches Agreement With BBVA To Acquire Its Shares In BBVA Chile

(RTTNews) - Scotiabank announced that Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) has formally accepted the Group's offer to acquire its 68.19% ownership in BBVA Chile, and its interests in certain subsidiaries, for approximately $2.2 billion. Scotiabank intends to merge BBVA Chile with its existing operations in Chile (Scotiabank Chile), subject to regulatory approvals. The transaction will double Scotiabank's market share in Chile to approximately 14%, and make Scotiabank the third largest private sector bank in the country.

The Said family, which owns 31.62% of BBVA Chile, has waived its Right of First Refusal to acquire BBVA's shares of BBVA Chile, but maintains the right to tender all or a portion of its shares in the mandatory tender offer to be carried out by Scotiabank. The Said family has indicated their willingness to potentially remain in the business and, if so, would invest up to approximately $500 million in order to own up to 25% of the combined business when Scotiabank Chile and BBVA Chile are merged.