Scotiabank (TSX:BNS) announced that it has finalized its acquisition of an additional ownership stake in KeyCorp (NYSE:KEY), solidifying its position as a significant shareholder in the US-based financial institution.
The Toronto-based bank said that with regulatory approval from the Federal Reserve Board, Scotiabank (TSX:BNS) acquired approximately 10% pro-forma ownership through newly issued common shares at $17.17 per share, totaling $2 billion.
This latest acquisition follows the initial investment of about 4.9%, completed in August 2024. Combined, the two transactions grant Scotiabank a total pro-forma ownership of approximately 14.9% in KeyCorp, valued at $2.8 billion.
"Our investment in KeyCorp represents a cost-effective, low-risk approach to deploying capital into the US while boosting returns for our shareholders," Scotiabank CEO Scott Thomson said.
"We are pleased to have closed this transaction, which is consistent with our commitment to allocate capital from developing markets to developed markets in North America."
Shares of Scotiabank added 0.4% at C$77.30 on Friday afternoon.