Scotiabank Expands Stake in KeyCorp Following Approval by the US Federal Reserve
- Scotiabank receives approval to increase its stake in KeyCorp to 14.9 percent.
- The investment is expected to have a positive impact on Scotiabank's earnings per share.
Eulerpool News·
Scotiabank has received the green light from the governors of the US Federal Reserve System to increase its investment in KeyCorp to a total of 14.9 percent. This move significantly raises the Canadian financial institution’s stake in the US regional banking giant.
As early as August 2024, Scotiabank announced its plan to invest approximately $2.8 billion in a two-phase transaction to acquire a 14.9 percent stake in KeyCorp. The first phase of this investment, which granted Scotiabank a 4.9 percent stake, was completed in August.
KeyCorp, with branches in 15 states and around 1,000 branches, offers an extensive portfolio of services, including both commercial and retail banking as well as investment advisory. Scotiabank expects positive effects on earnings per share in the first year following the completion of the additional investment.
Under the agreement, Scotiabank is entitled to occupy two seats on the Board of Directors of KeyCorp, subject to KeyCorp's approval. One of the nominees can be a senior executive, while the second position is to be filled by an independent person.
Last month, Steven Van Wyk was appointed to Scotiabank’s Board of Directors. With an impressive asset portfolio of nearly $1.4 trillion as of July 31, 2024, Scotiabank offers a broad range of financial services and is listed on the Toronto and New York stock exchanges. ![](https://cdn.eulerpool.com/images/data-analytics/better.jpg)
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