Canada’s Bank of Nova Scotia (Scotiabank) has brokered a deal to acquire Grupo Said’s remaining 16.8% stake in Scotiabank Chile.

The deal, valued at nearly $1.02bn (C$1.3bn), will see Scotiabank increase its stake in the Chilean arm to 99.8%.

Scotiabank president and CEO Brian Porter said: “Today’s announcement enables us to achieve even greater scale and deliver the highest value for customers, further strengthening our position as a Leading Bank in the Americas.

“Our long-standing relationship with the Said family will remain a significant benefit to us as we build on our momentum in Chile over the coming years.”

The deal is subject to customary closing conditions and regulatory approval.

As per the agreement, upon closing, Scotiabank will pay $513.28m in cash and issue seven million shares to Grupo Said.

The deal is expected to have an impact of approximately ten basis points on Scotiabank’s Common Equity Tier 1 capital ratio.

Scotiabank expects the deal to add nearly $27.64m every quarter to its earnings and be immediately accretive to earnings per share.

In May 2021, Scotiabank signed a deal to buy a 7% stake of the Said family for approximately $400m.

Scotiabank has been working to strengthen its Latin American operations recently. To this end, Porter has been shifting focus on markets like Mexico, Peru, Colombia and Chile.