Bank of Nova and Banco de Comercio (BanCo) today announced that they have signed an agreement that would see Scotiabank more than double its presence in El Salvador. Through the merger of Scotiabank El Salvador and Banco de Comercio and a subsequent public offer, Scotiabank would become the majority shareholder of the merged bank.

Terms of the transaction were not released, and the deal is subject shareholder approval and finalizing definitive documents.

“As an international bank with more than 170 years of experience, we continue to explore growth opportunities around the world and are very pleased with this prospect for growth in El Salvador,” said Rick Waugh, Scotiabank president and CEO, in a release.

Luis Ivandic, Scotiabank El Salvador president and CEO said, “Scotiabank is already part of the community in those areas where we operate and we look forward to reaching out to new customers and new communities. In the meantime, it is business as usual for both banks.”

Both banks say they remain committed to ensuring that all stakeholders of both banks benefit from any final transaction.

Scotiabank has had a presence in El Salvador since 1997. Scotiabank El Salvador is currently the fifth-largest bank in the country, with 430 employees, operating 20 branches across the country.

With assets exceeding US$ 1.1 billion, Banco de Comercio is the fourth-largest bank in El Salvador. The bank has 1,600 employees and 48 branches across the country. It also has 12 branches in the United States. Through affiliates, the bank has a presence in the Salvadorian insurance, factoring and leasing markets.

http://www.newswire.ca/en/releases/archive/October2004/22/c3546.html