Scotiabank closes first phase of investment in U.S. bank KeyCorp

TORONTO 鈥� Scotiabank says it has completed the first step in its investment in KeyCorp with the acquisition of a 4.9 per cent stake in the U.S. bank. The Canadian bank says it paid US$17.17 per share or about US$800 million for the stake.

Canadian Press Aug 30, 2024 8:13 AM Aug 30, 2024 8:35 AM

40f44eb5043e34c9168655e506026115d06bb22a712c1d02cb86259fa0a03742 — The Bank of Nova Scotia, or Scotiabank, signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj

TORONTO 鈥� Scotiabank says it has completed the first step in its investment in KeyCorp with the acquisition of a 4.9 per cent stake in the U.S. bank.

The Canadian bank says it paid US$17.17 per share or about US$800 million for the stake.

Scotiabank announced earlier this month a deal to acquire a 14.9 per cent stake in KeyCorp in two tranches.

The second phase of the investment includes the acquisition of the remaining 10 per cent stake and is expected to close in fiscal 2025, subject to regulatory approval.

KeyCorp operates in 15 states, with about 1,000 branches offering commercial and retail banking and investment advice and services.

Scotiabank chief executive Scott Thomson has said the investment in KeyCorp represents a low-cost, low-risk approach to deploying capital in the U.S. market.

This report by The Canadian Press was first published Aug. 30, 2024.

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The Canadian Press