According to the Canadian bank, the deal will make it the third largest non-state owned bank in Chile. Scotiabank provides services including private banking.

Toronto-headquartered Scotiabank, which has private banking and wealth management operations, has submitted an offer to acquire Banco Bilbao Vizcaya Argentaria’s shares in BBVA Chile, which BBVA is willing to accept if the group's minority partner, the Said family, does not exercise its right of first refusal under the shareholders agreement between BBVA and the Said family.

BBVA owns 68.19 per cent of BBVA Chile and the Said family owns 31.62 per cent of BBVA Chile. Scotiabank has offered to acquire BBVA's interests in BBVA Chile, and certain subsidiaries, for approximately $2.2 billion, the bank said in a statement.

This proposed deal is part of Scotiabank's strategy to increase scale within the Chilean banking sector and the Pacific Alliance countries. The bank said it will double Scotiabank's market share in Chile to approximately 14 per cent, and make Scotiabank the third largest non-state owned bank in the country.  

If the transaction is completed, Scotiabank's Common Equity Tier 1 capital ratio will be impacted by approximately 100 basis points.

BBVA is a multi-national banking group with headquarters in Bilbao, Spain.