- The U.S. Federal Reserve approved an application by Scotiabank (TSX:BNS) to buy up to 14.99 per cent of the voting shares in regional lender KeyCorp (NYSE:KEY)
- The approval marks the completion of the second phase of Scotiabank’s investment in KeyCorp. The initial phase, which involved acquiring a 4.9 per cent stake, was finalized on August 30, 2024
- With the Federal Reserve’s green light, Scotiabank is set to proceed with the remaining 10 per cent investment, expected to close by the end of the year
- Scotiabank stock (TSX:BNS) opened trading at C$78.98
The U.S. Federal Reserve has approved an application by Scotiabank (TSX:BNS) to buy up to 14.99 per cent of the voting shares in U.S. regional lender KeyCorp (NYSE:KEY), as the Canadian bank looks to boost its exposure to developed markets.
The approval marks the completion of the second phase of Scotiabank’s investment in KeyCorp. The initial phase, which involved acquiring a 4.9 per cent stake, was finalized on August 30, 2024.
With the Federal Reserve’s green light, Scotiabank is set to proceed with the remaining 10 per cent investment, expected to close by the end of 2024.
Chris Gorman, chairman and CEO of KeyCorp, expressed optimism about the partnership, stating in a news release, “We have already seen meaningful results from the first tranche of this investment as we continue to strengthen our strategic position. Completing this transaction will create additional capacity for growth, enabling further investments in targeted scale across our franchise.”
This investment is expected to enhance Scotiabank’s capabilities in the U.S., providing a platform for further expansion and collaboration between the two financial institutions.
With assets of C$1.4 trillion as of October 31, 2024, Scotiabank is one of the largest banks in North America by assets.
Scotiabank stock (TSX:BNS) opened trading 0.14 per cent higher at C$78.98 and has climbed 21.83 per cent since the year began.
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