Bank of Nova Scotia has reached an agreement with Commerzbank AG to acquire Dresdner Bank Brasil S.A. – Banco Multiplo (DBB), the bank said Thursday.

Terms of the transaction were not disclosed, but Scotiabank (TSX:BNS) said they were not financially material to the bank.

DBB is headquartered in Sao Paulo, Brazil and operates as a wholesale bank. It holds a multiple banking license, which enables the holder to offer a range of banking services.

Once the deal is completed, Scotiabank expects to be the only Canadian bank in Brazil with a multiple banking license. This new business will report through Scotiabank’s wholesale banking division, Scotia Capital.

“Scotia Capital is pleased to broaden our footprint in Latin America through the purchase of Dresdner Bank Brasil S.A. – Banco Multiplo,” said Steve McDonald, group head, global corporate and investment banking, and co-CEO, Scotia Capital.

“This transaction will provide us with an existing wholesale operating platform to accelerate our organic growth strategy in the Brazilian market. Based on our success in the region, we know that our offering in key sectoral areas — including oil and gas, power and mining — will play a dominant role in our growth plans in Latin America’s largest economy,” he added.

At the end of 2009 DBB had total assets of approximately US$400 million and approximately 50 employees.

“Scotia Capital has been actively expanding our wholesale business in key Latin American markets where we see tremendous potential for growth and we are very optimistic about the opportunity in Brazil,” said Mike Durland, group head, global capital markets, and co-CEO, Scotia Capital. “

“We have had a presence in Brazil for almost forty years through our representative office and the addition of a bank with a multiple banking license would give us an opportunity to broaden our future services in a very attractive market,” added Rob Pitfield, group head, international banking. “Latin America is an increasingly important part of Scotiabank’s international strategy and we continue to build on our already strong franchise by delivering superior service.”

In Latin America, Scotiabank has operations in Brazil, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Mexico, Panama, Peru, Puerto Rico and Venezuela. The Bank has more than 32,000 employees in the region, including affiliates. Scotiabank has been in El Salvador since 1997, where it is the fourth-largest bank; in Peru since 1997, where it is the third-largest bank; Mexico since 1967, where it is the sixth-largest commercial bank; and Chile since 1990, where it is the seventh-largest bank.

IE