Scotiabank BNS-T says it has received all of the required regulatory approvals for its deal to transfer its banking operations in Colombia, Costa Rica and Panama to Davivienda.
The Canadian bank announced the agreement in January to swap the operations for a 20 per cent stake in the Colombian financial institution.
The combined operations will operate under a new holding company, Davivienda Group.
The companies say they will work together to ensure a smooth transition for clients and employees.
In announcing the deal in January, Scotiabank said the move was part of its plan to improve profitability across its international banking operations.
The bank said the deal gives it the opportunity to participate in a business with a proven management team.
Davivienda has operations in Colombia, Costa Rica, El Salvador, Honduras, Panama and Miami has more than 24.6 million clients.
Scotiabank is expected to release its fourth-quarter results on Dec. 2.
Editor’s note: An earlier version of this article incorrectly stated that Scotiabank is "selling" its banking operations. Scotiabank is instead transferring the operations for a stake in Davivienda.