(Toronto) Scotiabank announced on Friday that it had finalized a two-part transaction to acquire a 14.9% stake in American bank KeyCorp for approximately US$2.8 billion.
Published yesterday at 1:42 p.m.
It indicates that it concluded the second part of the transaction, purchasing a 10% share, after approval by the board of governors of the American Federal Reserve.
Scotiabank says this transaction is a profitable and low-risk way to invest in the American market.
According to CEO Scott Thomson, this transaction fulfills its commitment to reallocate capital in developed markets in North America rather than developing markets.
The deal sparked speculation from some analysts that Scotiabank would want a majority stake in the bank, but Thomson said that was not the case.
Canadian banks have looked to the United States for expansion potential, but have faced numerous obstacles in making their plans a reality.
