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.
"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."
