Scotiabank has completed the purchase of 51% stake in Cencosud’s financial services arm as part of a 15-year strategic alliance.
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The two companies have also entered into a partnership agreement in Chile to manage Cencosud’s credit card portfolio and the provision of additional products and services to customers.
The transaction has been valued at $280m and will finance 100% of the credit card portfolio.
Currently, financial services business of Cencosud consists of approximately 2.5 million credit cards and is close to $1bn in outstanding balances in Chile.
Scotiabank group head for international banking Dieter Jentsch said: "We are happy to complete this acquisition and begin to provide our customers with more credit card options attract new customers and build scale in Chile.
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By GlobalData"This partnership is in line with our strategy to increase market share across all of our priority markets, including Chile."
Cencosud general manager Jaime Soler said: "This partnership will further develop our financial services offering to customers and align our operating model in Chile with the one in Brazil and Colombia."
