Impact of proposed Scotiabank sale to be assessed in accordance with Treaty – CCC
The CARICOM Competition Commission (CCC) has said that any impact the proposed acquisition of Scotiabank by Republic Financial Holdings Limited will be assessed in accordance with the Revised Treaty of Chaguaramas (RTC).
The Commission, a CARICOM Institution that was established by Article 171 of the RTC, is mandated to promote and protect competition within the Community.
“The Commission in its monitoring of business activity in the CARICOM Single Market and Economy (CSME), has taken note of the announcement on 28 November, 2018, by the Bank of Nova Scotia (“Scotiabank”) of its intended transaction to sell banking assets in nine (9) English and Dutch speaking countries in the Caribbean, namely,Anguilla, Antigua and Barbuda, Dominica, Grenada, Guyana, St. Kitts & Nevis, St. Lucia, St. Maarten, St. Vincent & the Grenadines, to Republic Financial Holdings Ltd (“Republic Financial”) and life insurance operations in another two (2) countries (Jamaica and Trinidad and Tobago) to Sagicor Financial Corporation (“proposed acquisition”).
The Suriname-based Commission has further noted the concerns of bank customers and governments across the Region regarding the proposed acquisition of Scotiabank by Republic Financial.
The Commission advises that it shall continue to monitor these developments in the banking and insurance sectors. Any impact to the Community market by the proposed acquisitions will be assessed in accordance with the RTC,” Chairman of the CCC, Justice Christopher Blackman, said.
He added that the Commission advised that it would continue to monitor the developments in the banking and insurance sectors.
Republic Financial Holdings Limited to acquire Scotiabank’s Banking Operations in Anguilla, Antigua, Dominica, Grenada, Guyana, St. Kitts & Nevis, St. Lucia, St. Maarten, St. Vincent & the Grenadines. https://t.co/fGO0Sc0KBU
— CARICOM (@CARICOMorg) November 27, 2018
“Any impact to the Community market by the proposed acquisitions will be assessed in accordance with the RTC,” Justice Blackman said.
The Chairman used the opportunity to highlight the need for strong national and regional competition rules and frameworks.
“Despite the need for these regulatory tools, the Commission stands ready to support the Member States of the CSME and financial sector regulators in analysing competition effects of the proposed acquisitions in their respective national or sub-regional jurisdictions.
As always, the Commission remains committed to a process that is fair and transparent in the determination of any regulatory matter where the interests of both business and consumers must be considered,” he said.