Scotiabank closes $2.8-Billion acquisition of KeyCorp stake

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TORONTO — Bank of Nova Scotia says it has closed its two-part deal to purchase a 14.9 per cent stake in U.S. financial institution KeyCorp for about US$2.8 billion.

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

Scotiabank says the deal is an economical, low-risk method to put money into the U.S. market.

Chief government Scott Thomson says the deal follows its dedication to shift capital from creating markets to developed markets in North America.

The deal raised hypothesis from some analysts that Scotiabank would need to search a majority stake within the financial institution however Thomson has stated that’s not the case.

Canadian banks have seemed to the U.S. for enlargement potential, however have confronted quite a few hurdles in seeing their plans via.

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