Colombia Regulator Lets Canada's Scotiabank Buy RBS's Unit

21st Jul 2010 00:49

BOGOTA (Dow Jones)--Bank of Nova Scotia (BNS), Canada's third-largest bank by assets, said Colombia's financial regulator has authorized its acquisition of the Colombian unit of Royal Bank of Scotland Group PLC (RBS). Both banks will make the sale agreement effective July 30. Scotiabank, as the Canadian bank is known, said it had reached an agreement with RBS on March 1. The RBS unit in Colombia was previously the local unit of ABN AMRO Bank (ABN). Terms weren't disclosed, but the transaction isn't financially material to Scotiabank, it said in a statement. The acquisition is Scotiabank's first in Colombia, and comes as part of the fallout of the global credit crisis that nearly crippled RBS, which was ultimately bailed out by U.K. taxpayers. The Canadian bank plans to grow in Colombia. The RBS unit will be renamed Scotiabank Colombia SA and will be 99.88% owned by Scotiabank. The RBS unit is Colombia's second-smallest bank in assets, ahead of Procredit, a microlender owned by a Dutch foundation and a German development bank. The bank employs fewer than 100 people in Colombia. The RBS unit offers deposit, loan and capital-markets products to corporate and commercial customers in Colombia, the region's fifth-largest market, Scotiabank said. Scotiabank is already a big player in Latin America, with operations in Mexico, Belize, El Salvador, Panama, Costa Rica, Dominican Republic, Peru, Venezuela, Brazil and Chile. -By Inti Landauro Dow Jones Newswires; 57-310-867 65 42; [email protected]. (END) Dow Jones Newswires July 21, 2010 19:49 ET (23:49 GMT)