Scotiabank wins regulatory approval for second phase of KeyCorp investment
Dec 13, 2024 - financialpost.com
Scotiabank has received regulatory approval from the United States Federal Reserve System for the second phase of its investment in KeyCorp, a U.S. bank. The Canadian bank initially announced in August its plan to acquire a 14.9% stake in KeyCorp for approximately US$2.8 billion through a two-step process. The first phase, involving a 4.9% stake, was completed on August 30. Scotiabank now anticipates closing the second phase, which involves acquiring an additional 10% stake, in 2024.
KeyCorp operates in 15 states with around 1,000 branches, providing commercial and retail banking, as well as investment advice and services. This strategic investment by Scotiabank is part of its efforts to expand its presence in the U.S. market.
Key takeaways:
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Scotiabank has received regulatory approval from the United States Federal Reserve System for the second phase of its investment in KeyCorp.
The Canadian bank plans to acquire a total 14.9 per cent stake in KeyCorp, with the second phase involving an additional 10 per cent stake expected to close in 2024.
The initial investment of a 4.9 per cent stake in KeyCorp was completed on August 30, 2024.
KeyCorp operates in 15 states with around 1,000 branches offering commercial and retail banking and investment services.
