Scotiabank to Acquire Minority Stake in KeyCorp
Deal Signals Canadian Bank's Expansion into US Market
Acquisition to Strengthen Scotiabank's Regional Presence
WEB August 12, 2024 at 9:57 AM EDT
Toronto-based Bank of Nova Scotia (Scotiabank) has agreed to acquire a minority stake in KeyCorp, one of the largest regional banks in the United States. The deal, which is subject to regulatory approvals, is expected to close in the fourth quarter of this year.
Under the terms of the agreement, Scotiabank will acquire approximately 14.9% of KeyCorp's outstanding common shares at a price of US$17.17 per share, representing a total investment of approximately US$2.6 billion. The transaction will also include a commercial agreement that will provide Scotiabank with access to KeyCorp's extensive branch network and customer base across the United States.
The acquisition is a significant step in Scotiabank's long-term strategy to expand its presence in the United States. With a strong track record in international banking, Scotiabank sees this investment as an opportunity to capitalize on the growth potential of the US market.
KeyCorp, headquartered in Cleveland, Ohio, is one of the largest regional banks in the United States, with assets totaling approximately US$170 billion. The bank has a strong presence in the Midwest and Eastern United States, with over 1,000 branches and 13,000 employees.
Analysts expect the acquisition to benefit both banks. Scotiabank will gain access to a larger customer base and a wider distribution network in the United States, while KeyCorp will benefit from Scotiabank's expertise in international banking and its strong capital position.
Comments