Scotiabank buying 51% of Chilean credit card business for $278M


Scotiabank (BNS) is buying a 51% stake in Chilean retailer Cencosud's financial services unit for C$300M ($278M).

The business handles 2.5M credit cards and over $1.2B in outstanding balances; its acquisition will make Scotiabank the #3 credit card provider in Chile.

As part of the deal, Scotiabank and Cencosud are entering into a 15-year partnership to "manage the credit card business and provide additional products and services to customers of both organizations."

Scotiabank already has ~3.8K employees, 130 branches, and 166 ABMs in Chile. EVP Wendy Hannam calls the purchase "consistent with [Scotiabank's] focus on growing in key markets in Latin America."

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Comments (1)
  • 1GreatCFA
    , contributor
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    So this is what they are doing with some of the cash from the CI sale??? 2.5 million credit cards eh? Well I don't know much about Chile but if Argentina is a proxy for the region I'd say this deal stinks. Seems some of those people have trouble paying their bills on time [at all].
    22 Jun 2014, 10:49 PM Reply Like
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