Scotiabank Perú S.A.A. (BVL:SCOTIAC1) reached an agreement to acquire 51% stake in Banco Cencosud S.A. from Cencosud Peru S.A. for approximately CAD 130 million on May 9, 2018. The consideration is subject to adjustments based on the value of Banco Cencosud's equity on the date on which the transaction takes effect. Under the terms of the agreement, Scotiabank Perú S.A.A. and Banco Cencosud S.A. will also enter into a 15 year partnership to manage the credit card business and provide additional products and services to customers.

This acquisition forms part of the International Banking business segment. The agreement is subject to regulatory approval including authorization from the Banking, Insurance and Pension Funds Administration Superintendent of Peru. The terms of the transaction are not financially material to Scotiabank.

The proceeds raised from this operation will be used to reduce debt as part of the financial strengthening plan implemented by Banco Cencosud. The acquisition is expected to close in the first quarter of 2019.