Regulator approves Scotiabank's US$178mn Comercio acquisition

Canada's Scotiabank (NYSE: BNS) said on Monday that El Salvador's banking regulator has approved its US$178mn acquisition of local bank Banco de Comercio. Scotiabank said in a statement that it had acquired more than 97% of Comercio's shares at US$27.75 per share. The go-ahead from the regulator completes Scotiabank's memorandum of understanding last October to purchase a majority of Comercio's shares and merge it with Scotiabank El Salvador. "Scotiabank El Salvador will retain the strengths of Comercio, while maintaining a name that will give our customers the benefit of our global operations," incoming Scotiabank El Salvador president Jim Meek stated. The deal establishes Scotiabank as the country's fourth largest banking institution with nearly US$1.6 billion in assets and a consolidated market share of some 17%. Comercio branches will be re-branded Scotiabank El Salvador. Comercio provides personal, commercial and corporate banking products and services as well as being involved in the factoring, leasing and remittance businesses.