The deal between Sagicor Financial Corporation and Scotiabank, which would have seen the former acquire the insurance operations of Scotia in Jamaica, has fallen through.
The announcement comes almost a year after news initially broke that the two were in discussions to finalise an agreement for sale of Scotiabank’s Jamaican and Trinidadian insurance operations for an estimated US$240 million.
It is expected that discussions for the purchase of the Trinidad and Tobago operations will continue.
Relatedly, the Trinidad-based Republic Financial Holdings Limited recently acquired seven Scotiabank operations with the region, pending relevant approvals.
“Sagicor and The Bank of Nova Scotia Jamaica Limited have mutually agreed not to proceed with the 20-year distribution agreement for insurance products and solutions in Jamaica. As a result, Sagicor will not proceed with the acquisition of Scotiabank Insurance Jamaica at this time,” said a release by Sagicor.
Should the agreement between Sagicor Financial and Scotiabank Trinidad and Tobago go through, it will create a 20-year distribution deal for insurance products and solutions in the country, with Sagicor Financial acquiring all issued and outstanding shares.
Initially, a deadline of September 30 deadline was set to finalise the agreement or extend until one was reached.