10th April 2019

CARICOM Competition Commission raises concern over Scotiabank sale

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By Caribbean News Now

By Jermine Abel

BASSETERRE, St Kitts (WINN) — The sale of the Bank of Nova Scotia’s regional assets to Republic Financial Holdings is back in the spotlight as the Caribbean Community (CARICOM) Competition Commission (CCC) raises anti-competitive concerns.

The Suriname-based body undertook a study under article 176(1) of the Revised Treaty of Chaguaramas (RTC) after taking note of the sale in nine territories, which also included the sale of the life insurance division.

n a statement, CCC noted that, on 5th December 2018, the Commission advised the public that it took note of an announcement on 28th November 2018 by the Bank of Nova Scotia of an intended sale of banking assets in nine territories to Republic Financial Holdings Ltd and life insurance operations in another two territories to Sagicor Financial Corporation.

In a report, the Commission said it has now completed a preliminary assessment under the revised treaty.

Chairman of the Commission, Justice Christopher Blackman, noted, “The proposed transaction or parts thereof could possibly have anti-competitive effects in at least three member states in the Community.”

With that in mind, Blackman said the Commission remains cognizant of the provisions of Article 175 of the RTC, and at this time reminds national competition authorities and member states of this critical provision.

The Commission stopped short of identifying the three territories.

To this end, the Commission said it would approach those national competition authorities and sector regulators in affected member states in accordance with the preliminary examinations of the proposed transaction between the enterprises.

Antigua and Barbuda’s Prime Minister Gaston Browne has been a vocal critic of the sale.

Republic Financial Holdings purchased Scotia Bank assets in the six countries of Anguilla, Antigua and Barbuda, Dominica, Guyana, St Kitts and Nevis, and St Vincent and the Grenadines for a total of US$123 million.

US$25 million was paid for Anguilla specifically and US$98 million for the other five operations.

Republished with permission of West Indies News Network

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