Barbados-based Signia Financial Group Inc, an associated company of GraceKennedy Limited (GKL), has acquired Globe Finance Inc, strengthening GK’s foothold in the merchant bank market in Barbados.

The acquisition will result in the formation of the amalgamated company, which will be known as SigniaGlobe Financial Group Inc. GKL currently holds a 40 per cent shareholding in Signia and will hold the same 40 per cent stake in the new entity — SigniaGlobe Financial Group Inc.

In speaking about the acquisition Don Wehby, GKL’s Group CEO, said the merger will result in a stronger positioning of the new entity.

“We continue to look for opportunities to invest across the region. This transaction is in keeping with our long-term strategy and we believe that this merger, which will result in the creation of the largest merchant bank in Barbados, will significantly strengthen our financial services platform in the Caribbean,” said Wehby in a release from the company.

The transaction is estimated to cost a total of BBD11.8 million. GK Capital Management Limited, the investment and advisory arm of GKL, advised Signia in the transaction.

Signia and Globe are currently touted as the leading merchant banks in Barbados. Both merchant banks have several competing product offerings including fixed deposits, retail and commercial lending, commercial leasing, and foreign exchange services. In addition to these common offerings, there are also some other products which are exclusive to each company. Signia is a registered stockbroker, licensed by the Barbados Stock Exchange. Globe Finance Inc currently offers a VISA credit card service to its customers.

Results released as at December 2017 showed that the two entities have combined deposits of BBD351.5 million and loans of BBD339.8 million.

News of the potential merger first surfaced in February of this year when the companies confirmed that they had signed a letter of intent.