Canadian banking major Scotiabank has wrapped up the acquisition of 68.19% interest in BBVA Chile and other companies from Spanish banking group BBVA for nearly $2.2bn.

The transaction, first announced in November last year, also includes acquisition of other companies such as BBVA Seguros Vida.

However, the deal excludes the vehicle financing business Grupo Forum, which will continue to be solely owned by BBVA.

The deal concluded after Scotiabank bank obtained regulatory approvals in Chile and Canada.

The acquisition is part of Scotiabank’s plan to boost its presence in the Chilean market as well as in the Pacific Alliance countries.

After completion of the deal, Scotiabank’s presence in Chile is expected to grow two folds and it will become one of the largest private banks in the country. It will have approximately 14% market share in total loans in Chile.

Now, BBVA Chile will merge with and into Scotiabank Chile, subject to approval from the Superintendent of Banks and Financial Institutions (SBIF) in Chile.

BBVA said that the transaction will yield capital gains of about €640m and will have a positive impact on its fully-loaded CET 1 capital ratio of about 50 basis points.