Scotiabank's majority stake acquisition in Colfondos

Arias, Fábrega & Fábrega  acted as counsel to Mercantil Colpatria S.A. in connection with the sale of 51% of its interest in pension fund company Colfondos AFP to Bank of Nova Scotia (Scotiabank). Colpatria, one of the largest banking groups in Colombia, will retain a 49% stake in Colfondos.

The legal team from ARIFA Corporate Services, the offshore division of ARIFA, advised Colpatria  in all corporate matters related to the partial sale of its interest in Colfondos. The team is also advising the bank on its subsequent minority shareholder interests.

Expansion across Latin America is a strategic priority for Scotiabank's Global Wealth Management division. The division includes several businesses involved with asset management, insurance and full-service brokerage. These entities allow Scotiabank to offer private banking and trust services to high net worth clients around the world.

Scotiabank is one of the premier financial institutions in North America, and is Canada's most international bank.

Grupo Colpatria is the fifth largest banking group in Colombia in terms of loans and the sixth in terms of deposits, and serves both the retail and commercial sectors.

Colfondos is Colombia's fourth-largest pension fund company, with approximately USD $9.7 billion worth of assets under management. Colfondos has 27 offices in 20 different cities across Colombia.

ARIFA partner Gian Castillero was principally involved in this transaction, along with associate Federico Alfaro. Partner Estif Aparicio offered advice with regards to tax support, while international associate Andres Rubinoff provided assistance in the M&A and corporate aspects of the transaction.