Republic acquires Caribbean bank

Republic Bank Limited has agreed to purchase 93 percent of the shareholding of Banco Mercantil, the sixth largest bank in the Dominican Republic (DR). Banco Mercantil is a commercial bank which offers multiple services to retail and corporate clients. The announcement comes one month after Republic Bank signed the Sale and Purchase Agreement for the acquisition of the majority shareholding (57 percent) of the Barbados National Bank (BNB). Banco Mercantil has 26 branches operating from the Dominican Republic with a staff of approximately 700. According to Republic Bank, the Central Bank of the Dominican Republic has welcomed the investment, which will strengthen the DR banking sector. Technologically savvy, with credit card operations throughout the DR and a strong brand image, Banco Mercantil has been in existence since 1984.

The Board of Directors of Banco Mercantil stated that: “The entry of the significant Trinidad financial banking institution in the DR will initiate a new era in the business relationship between both countries in which Mercantil will play an important role.” Former deputy managing director, Republic Bank Ronald Huggins has been carded to head the DR operations together with Alberto Tarabotto, Banco Mercantil’s recently appointed chief operating officer, who has over 20 years experience in the banking sector. Republic’s chairman and managing director, Ronald Harford said the bank was delighted to have this opportunity to be a part of the DR economy. “We have been doing business there for the last five years and have found it to be a country with significant opportunities for TT business.”

He added that this expansion is consistent with our strategy of expansion into the Spanish speaking Caribbean and will also allow Republic customers to deepen their ties with one of the largest markets in the Caribbean. In its continued expansion into the Spanish-speaking market, Republic Bank opened a representative office in Cuba in 2002 in Havana which is making the Cuban market more accessible to Caribbean manufacturers desirous of exporting their products, as well as assisting Cuban companies in developing their Caribbean trade.