Scotia Bank sale could have anti-competitive effect says CARICOM
The Suriname-based Caribbean Community (CARICOM) Competition Commission says the intended sale of Scotiabank’s assets in nine Caribbean countries could have anti-competitive effects in at least three CARICOM member states.
“The Commission remains cognisant of the provisions of Article 175 of the RTC (Revised Treaty of Chaguaramas) and at this time reminds national competition authorities and member states of this critical provision.
“The Commission also informs that it shall approach those national competition authorities and sector regulators in affected member states in accordance with Article 176(1), for the conduct of preliminary examinations of proposed transaction between the enterprises,” it said in a statement.
Last November, the Trinidad-based Republic Financial Holdings Limited announced that it was seeking to acquire Scotia bank operations in several Caribbean countries.
The banks being acquired are located in Guyana, St Maarten, Anguilla, Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.
It said that the purchase price is US$123 million, which represents US$25 million consideration for total shareholding of Scotia bank Anguilla Limited and a premium of US$98 million over net asset value for operations in the remaining eight countries.
Last week, Antigua and Barbuda Prime Minister Gaston Browne, who has openly expressed reservations about the sale, reiterated his government’s position that it would not issue a vesting order to facilitate the sale of Scotiabank operations in his country.
Browne told legislators that workers at Scotia bank had brought several issues to the attention of his administration including the issue of severance payments.
“In the case of Antigua and Barbuda, and by the way, we are not giving Scotia bank any vesting order. They are not getting it. We are very firm on that. However, in the unlikely event they were successful in selling this Antiguan branch to Republic Bank they will have to pay the severance…
“We are giving the staff options, the right to exercise options of taking the severance and continue to work, take the severance and leave or if they wish to commute their service. The employee must have that right. It’s his labour, it is his fundamental right to determine for whom he works,” Browne said.