Scotiabank completes the purchase of a majority stake in BBVA Chile
Torys acted as counsel to Scotiabank with a team led by (Ricco) A.S. Bhasin and that included Cameron Koziskie, Konata Lake, Kevin Armitage, Selam Ibrahim and Jessica He (corporate/M&A).
On November 28, 2017, Scotiabank announced that it submitted a binding offer to acquire Banco Bilbao Vizcaya Argentaria, S.A.'s (BBVA) shares in BBVA Chile, of which it owns 68.19%, for approximately US$2.2 billion (C$2.9 billion).
BBVA formally accepted Scotiabank's offer on December 5, 2017, after the Said family, its minority partner with a 31.62% ownership interest, waived its Right of First Refusal. The Said family maintained the right to tender all or a portion of its shares in the mandatory tender offer, required under Chilean law, to be carried out by Scotiabank. However, the Said family indicated their willingness to potentially remain in the business and, if so, would invest up to approximately US$500 million (C$650 million) in order to own up to 25% of the combined business when Scotiabank Chile and BBVA Chile are merged.
On July 6, 2018, following approval from the regulatory entities in Chile and Canada, Scotiabank announced the closing of the acquisition and that it reached an agreement with the Said family to remain invested in BBVA Chile and to participate in the merger of the two banks. The merger of the two banks is the next step in the process, which is currently pending approval from the Superintendent of Banks and Financial Institutions (SBIF) in Chile. The Said family will have a participation of close to 25% in the merged bank.
BBVA Chile has $29 billion in assets and has 4,000 employees at 127 branches.
Scotiabank is Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific.
BBVA is global financial group with a diversified business providing financial services in more than 30 countries to 72 million customers. It is a leading bank in the Spanish market and the biggest financial institution in Mexico. BBVA also has leading franchises in South America and the Sunbelt region in the U.S.
Further information can be found on Canada Newswire's website.