On Thursday, September 16^th 2010, the “Canada’s most international bank” (as it refers to itself), Scotiabank, claims that it had an agreement with Commerzbank AG to acquire a wholesale bank, Dresdner Bank Brasil S.A, in Sao Paulo. Because of the fact that Dresdner Bank holds a multiple banking license, it provides Scotiabank with necessary tools to open up the markets in Brazil. Scotiabank also said that: “it expects to be the only Canadian bank in Brazile with a multiple banking license.” Scotiabank not only wants to be the pioneer, but also wants to dominate over the markets there.  By buying this bank at Brazil, Scotiabank wishes to branch out its reputation and strength to Latin America and expand its markets throughout Latin America gradually.  I think Scotiabank is smart in the way that it heads down to Latin America, a developing country, to look for opportunities and markets that are mostly depleted in North American markets. It avoids direct competition in North America and shifts its direction to a place where tremendous growth is potential.

Reference website: http://www.cbc.ca/money/story/2010/09/16/scotiabank-brazil.html