Latin America market round up: Scotiabank buys in Chile

Canada’s Scotiabank has agreed to buy 79% of Chile’s Banco del Desarrollo for $810 million, although it hopes soon to acquire the entire bank. The stake will be purchased from Sociedad de Inversiones Norte Sur, a Chilean investment firm that holds 39%, Crédit Agricole with 24% and Intesa Sanpaolo, which has 16%. "As required by local rules, Scotiabank will be making a public share offering on the same terms and expects to acquire up to 100% of Banco del Desarrollo, which would be valued at $1.03 billion," says Scotia. The deal is expected to close in November. Once it does, the combined operations of Scotiabank Sud Americano, the Chilean subsidiary of Scotiabank, and Banco del Desarrollo will create Chile’s sixth-largest bank.