Scotiabank (BNS, BNS.TO) Tuesday said it has acquired 50 percent of BBVA's pension fund management business, AFP Horizonte, in Peru, for approximately C$260 million.
Under the terms of the transaction, Scotiabank and SURA Asset Management, a subsidiary of Grupo SURA, who has acquired the remaining 50 percent of AFP Horizonte, will jointly manage the company through a transition period.
Upon approval, the company will be divided and Scotiabank will integrate its 50 percent share of this business with its existing pension fund management business in Peru, Profuturo AFP.
The acquisition increases the scale of Scotiabank's existing Profuturo AFP business thereby strengthening its presence in this growing segment.
"Pension fund management is one of the largest wealth management segments in Latin America and we see an increased demand in this area as the young populations in this region enter the workforce and participate in the formal economy," said Carlos González-Taboada, CEO of Scotiabank in Peru, President of Profuturo AFP.
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