- Investment Details:
- Scotiabank has agreed to acquire a 14.9% pro-forma ownership stake in KeyCorp, the parent company of Ohio-based KeyBank, for $2.8 billion.
- The acquisition will take place in two phases: an initial 4.9% stake in Q4 of fiscal year 2024, followed by an additional 10% in fiscal year 2025.
- Board Representation:
- Once the second phase is completed, Scotiabank will have the right to appoint two members to KeyCorp’s board of directors, including one senior Scotiabank executive and one third-party director.
- KeyCorp Overview:
- KeyCorp operates 1,000 branches and around 1,200 ATMs across 15 US states, managing $187 billion in assets.
- The firm offers a range of financial services, including cash management, deposits, lending, and investment services.
- Strategic Importance:
- Scott Thomson, Scotiabank’s president and CEO, emphasized that the investment aligns with Scotiabank’s strategy to increase capital in priority markets and provides attractive returns and future opportunities in the North American corridor.
- Previous Transaction:
- In November of the previous year, Canadian Tire repurchased Scotiabank’s 20% stake in its financial services arm, CTFS, in a $650 million all-cash transaction.
