Scotiabank closes US$2.8B acquisition of KeyCorp stake

Canadian Press

Published Dec 27, 2024 • 1 minute read

The Bank of Nova Scotia, or Scotiabank, signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023. Photo by Andrew Lahodynskyj /The Canadian Press

TORONTO — Scotiabank says it has closed its two-part deal to buy a 14.9 per cent stake in U.S. bank KeyCorp for about US$2.8 billion.

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It says it closed the second part of the deal, buying a 10 per cent share, following approval from the board of governors of the U.S. Federal Reserve System.

Scotiabank says the deal is a cost-effective, low-risk way to invest in the U.S. market.

Chief executive Scott Thomson says the deal follows its commitment to shift capital from developing markets to developed markets in North America.

The deal raised speculation from some analysts that Scotiabank would want to seek a majority stake in the bank but Thomson has said that’s not the case.

Canadian banks have looked to the U.S. for expansion potential, but have faced numerous hurdles in seeing their plans through.

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