Bank of Nova Scotia today announced a US$180 million cash offer to purchase all shares of Banco de Comercio (BanCo) in El Salvador via public offer. The US$27.75-per-share offer is open for acceptance for seven days.

The bank originally announced its intention to merge with BanCo in October. The merger transaction is expected to close before March 31, 2005 and is subject to regulatory and shareholder approvals.

The deal includes the merger of Scotiabank El Salvador and BanCo, and would see Scotiabank significantly increase its presence in El Salvador.

“Scotiabank has deep roots and a long history in the Caribbean and Central America, and we are proud to grow our operations in this region, where we have been embraced as the leading bank,” said Rick Waugh, Scotiabank president and CEO, in a release. “This region is an integral part of Scotiabank’s international strategy and we have built a strong franchise by delivering superior service and by providing financial stability.”

Scotiabank El Salvador is the fifth largest bank in the country, with 430 employees, 20 branches and 21 automated banking machines across the country.

With the merger of Scotiabank El Salvador and BanCo, Scotiabank will become the majority shareholder of the country’s fourth-largest bank, with a consolidated market share of more than 17%. The merger will create a bank with nearly US$1.6 billion in assets.

BanCo has 1,600 employees, as well as 47 branches and 83 ABMs. BanCo offers products and services in the personal, commercial and corporate banking areas. BanCo is also active in the remittance business, with 12 branches in the U.S. Through affiliates, the bank also has a presence in the Salvadorian insurance, factoring and leasing markets.

“BanCo’s board of directors have endorsed the Scotiabank offer, believing it is fair to BanCo’s shareholders, and is in the best interest of the company’s employees and customers,” said Tim Hayward, executive vp and chief administrative pfficer, International Banking, Scotiabank.