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Tuesday, February 19, 2013

Colombia's Bancolombia to purchase HSBC Panama for $2.1 bln, (NYSE: CIB)

Bancolombia SA, Colombia's largest lender by assets, agreed to purchase HSBC Bank SA Panama for $2.1 billion, the company told local regulators on Tuesday, the latest in an expansion wave by Colombian banks in Latin America.The acquisition includes HSBC Panama's brokerage, fiduciary services unit, banking business and its insurance company.Even as Colombia's economy begins to slow, its banking sector remains robust and has expanded internationally in the last few years, demonstrating the sector's increased clout in the region after Colombia was awarded investment grade in 2011.Last year, Banco GNB Sudameris agreed to purchase HSBC's units in Colombia, Peru, Paraguay and Uruguay for $400 million, while Banco Davivienda agreed to acquire HSBC assets in Costa Rica, El Salvador and Honduras for $801 million.

Bancolombia SA is a Colombia-based financial institution primarily engaged, together with its subsidiaries, in the banking sector. Shares of CIB remained unchanged at $68.65. In the past year, the shares have traded as low as $53.78 and as high as $70.62. On average, 284125 shares of CIB exchange hands on a given day and today's volume is recorded at 1000.