Scotiabank’s Acquisition of Citibank’s Consumer and Small and Medium Enterprise operations in Colombia

Skadden is advising Citibank in connection with Scotiabank’s announcement on January 31, 2018, that Scotiabank and its Colombian subsidiary, Banco Colpatria Multibanca Colpatria S.A.

Colpatria Multibanca Colpatria S.A. has reached an agreement to acquire the consumer (retail and credit cards) and small and medium enterprise operations of Citibank in Colombia, subject to regulatory approval. Scotiabank and Mercantil Colpatria will invest proportionately to maintain their existing ownership levels in Banco Colpatria. Scotiabank’s common equity tier one capital ratio will be impacted by less than 10 basis points. The transaction is not financially material to Scotiabank.

Citibank’s operations in Colombia include 47 branches and 424 self-service access points across the country. This agreement also includes the assumption by Banco Colpatria of Citibank’s workforce. This acquisition will enhance Banco Colpatria’s strategic position by making it the market-leader in credit cards, increasing its scale in Colombia through the addition of more than 500,000 new customers and expanding its ability to greater serve the country’s premium banking segments supported by Scotiabank’s Global Wealth Management network.

Until the transaction receives regulatory approval, all operations, branches, and products will continue to operate as usual. Banco Colpatria, Scotiabank and Citibank will work together to ensure a smooth transition for customers and employees.

Banco Colpatria is Colombia’s fifth largest banking group (consumer loans, home loans, and companies and SMEs) and sixth in deposits (savings, current and CDT accounts). It serves individuals and the business sector with its presence in 38 cities, $13 billion in assets, a network of 175 offices and more than 370 ATMs. It is recognized as a leader in credit cards (including co-branding cards) and has more than 15 years’ experience in partnership with commercial establishments such as Cencosud, Codensa, Claro, Terpel, Yamaha, among others.

Scotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. We are dedicated to helping our 24 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 88,000 employees and assets of over $915 billion (as at October 31, 2017), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS).

The Skadden team includes: M&A partner Paola Lozano (Picture), counsel Hilel Pohulanik and international visiting professional Daniel Hernandez; Tax partners Stuart Finkelstein and Brian Krause, and associate Jay Cosel; Executive Compensation and Benefits partner Erica Schohn and associate Page Griffin (Washington, D.C.); International Litigation and Arbitration partner Julie Bedard and associate Jordan Wall; and Intellectual Property and Technology counsels Andrew Woodard and Ken Kumayama (Palo Alto).

Involved fees earner: Paola Lozano – Skadden Arps Slate Meager & Flom; Hilel Pohulanik – Skadden Arps Slate Meager & Flom; Daniel Hernandez Tascòn – Skadden Arps Slate Meager & Flom; Stuart Finkelstein – Skadden Arps Slate Meager & Flom; Brian Krause – Skadden Arps Slate Meager & Flom; Jay Cosel – Skadden Arps Slate Meager & Flom; Erica Schohn – Skadden Arps Slate Meager & Flom; Page Griffin – Skadden Arps Slate Meager & Flom; Julie Bédard – Skadden Arps Slate Meager & Flom; Jordan Wall – Skadden Arps Slate Meager & Flom; Andrew Woodard – Skadden Arps Slate Meager & Flom; Ken Kumayama – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: Citibank;


Author: Ambrogio Visconti