Scotiabank hopes to close purchase of NBC by midyear

- Wednesday, February 9, 2011

Scotiabank hopes to close purchase of NBC by midyear

Scotiabank (NYSE: BNS) expects to complete the approval process for purchasing Uruguayan number four private sector player Nuevo Banco Comercial (NBC) by midyear, Dieter Jentsch, the Canadian bank's executive VP for Latin America, told BNamericas.

Last week, Scotiabank announced it had closed the transaction to purchase consumer finance company Pronto!, which was announced together with NBC's acquisition on December 6, 2010.

"The closing process for the NBC acquisition is proceeding as expected. We are currently working with Uruguayan authorities in order to satisfy all related formal requirements," Jentsch said.

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Scotiabank agreed to acquire 100% of NBC and Pronto! from an investor group led by global private equity firm Advent International for an undisclosed sum, although market observers have put the price tag at between US$250mn and US$300mn.

NBC has an 11% share of the country's loan and deposits market among private sector banks, and had 30.1bn pesos (US$1.54bn) in assets as of December 31. It also has the largest retail banking network in Uruguay with 49 branches.

With 600 retail points of sale and 37 branches, Pronto! has some 200,000 clients and is the market leader in personal loans, according to Scotiabank.