UPDATE 2-Scotiabank buys Uruguay bank, financing firm

* Buys controlling stake in Nuevo Banco Comercial, Pronto

* Terms of deals not disclosed

* Scotiabank shares up 1.1 percent
(Adds comments, details, share price)

TORONTO, Dec 6 (BestGrowthStock) – Bank of Nova Scotia (BNS.TO: ),
the Canadian bank that is aggressively expanding its presence
in Latin America, is now pushing into Uruguay with the
acquisition of private bank Nuevo Banco Comercial and
consumer-finance company Pronto, it said on Monday.

Scotiabank is buying both lenders from an investor group
led by global buyout firm Advent International. The Nuevo Banco
(NBC) purchase will give Scotiabank the common shares of the
bank, while the government will retain 40 percent control
through its preferred share holding.

Scotiabank, Canada’s No. 3 lender, did not disclose the
purchase price, but said the additions would add immediately to
earnings.

Michael Goldberg, an analyst at Desjardins Securities, said
the move was positive for Scotiabank and in line with its
recent moves.

“While Uruguay is a small market, it fits neatly with
Scotia’s larger South American operations in Chile and Peru,”
he said in a note.

NBC is a Uruguay’s No. 1 credit card provider and has the
largest retail banking network in the country, Scotiabank said.
Among private banks, it hold an 11 percent share of Uruguay’s
loans and deposits market with C$1.2 billion ($1.19 billion) in
total deposits.

NBC Chief executive Horacio Correge said the acquisition
would not mean big changes to the bank’s management as
Scotiabank shares its business focus.

At midday, the Scotiabank stock was outperforming its
domestic peers with a 1.1 percent gain at C$56.25 on the
Toronto Stock Exchange.

Scotiabank said the acquisition will make it the first
Canadian lender with a retail network in Uruguay.

“Scotiabank has ambitious plans for the Uruguay market,”
Brian Porter, the head of the International Banking unit, said
in a statement.

Pronto is Uruguay’s market leader in personal loans with 37
branches, 480 employees, and about 200,000 clients.

Scotiabank has Latin American operations in Peru, Brazil,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Mexico, Panama, Puerto Rico and Venezuela. It also
has a growing presence in East Asia.

Scotiabank has been seeking international growth in
wholesale banking unit and has separated its wealth management
wing into its own division, and recently agreed to buy the 82
percent of DundeeWealth (DW.TO: ) that it does not already own
for C$2.3 billion.

($1=$1.01 Canadian)
(Reporting by Cameron French, additional reporting by Conrado
Hornos in Montevideo; editing by Rob Wilson)

UPDATE 2-Scotiabank buys Uruguay bank, financing firm