BAC Credomatic has announced plans to purchase Panama’s Multibank, potentially making it the largest bank in Central America by market share.
Through BAC Holding International Corp. (BIC), the purchase is subject to approval by the respective banks’ directors, shareholders and regulatory authorities. BIC would look to buy 99.7% of Multi Financial Group, the owners of Multibank.
Rodolfo Tabash Espinach, Chairman of the Board of Directors of BIC and CEO of BAC, said in a prepared statement: “BAC is in the best position to carry out this transaction. In recent years, we have experienced consistent and sustainable growth, which allows us to aspire to finalize this acquisition and further accelerate the generation of triple value.”
Should the sale go through, it would give BAC $43 billion in assets, $30 billion in loan portfolio, and $32 billion in deposits, placing it among the top three banks in Panama by assets.
Acquisition Accelerates BAC’s Regional Expansion
“The subsequent merger would allow us to consolidate two organizations with over 120 years of combined experience and strengthen the value proposition for banking customers,” added Tabash Espinach.
BAC currently has over 6 million customers in the region and a presence in all Central American countries. Each bank has stated that until the merger goes through, operations will continue as normal.
“This decision reflects the strong confidence that Panama inspires as an engine of economic growth in the region, and the optimism for the future, supported by the stability, strategic vision, and talent of our people, whose dedication and capabilities are fundamental to building an environment conducive to investment and sustainable development,” added Ramón Chiari Brin, CEO of BAC Panama.
The move marks a busy end to the year for the Superintendencia de Bancos de Panamá, which authorizes the transfer of assets between Scotiabank and Banco Vivienda in Panama. The move sees 75% of Banco Nova Scotia Panama’s assets convert into roughly 20% of the new group. The transfer has already been approved in Costa Rica and is now awaiting the Colombian authorities’ go-ahead to complete the deal.