Bank of Nova Scotia today announced that it has received regulatory approvals and completed the previously announced purchases of two Peruvian banks. Through these purchases, Scotiabank will invest $390 million as announced in December.

Scotiabank has purchased approximately 80% of Banco Wiese Sudameris (BWS) from Italy’s Banca Intesa, and has also purchased 100% of Banco Sudamericano (BSA), of which it is currently a 35% shareholder. Over the next several months, these institutions will be combined to form the country’s third largest bank. Scotiabank will hold an approximate 80% stake in the new bank with Banca Intesa retaining approximately 20%.

The purchases continue a series of recent Latin American investments by Scotiabank, including Mexico, the Dominican Republic, Puerto Rico and El Salvador.

“This is another step forward in Scotiabank’s growth strategy in international, and particularly Latin American, markets,” said Rick Waugh, Scotiabank president and CEO, in a release.

Waugh reinforced the previously stated commitment to address the Aval, a government guarantee currently valued at about US$250 million established by the Government of Peru in favour of BWS, and Scotiabank’s intention that the new bank reach an agreement with the Peruvian government regarding all pending economic issues related to the 1999 restructuring of Banco Wiese.

“The transfer of BWS control to Scotiabank ahead of schedule is the result of the excellent dialogue and cooperation established by the Intesa and Scotiabank teams combined with the efficiency of the local authorities and regulators,” said Giovanni Boccolini, head of international subsidiary banks, Banca Intesa.