Scotiabank has secured the approval from the Board of Governors of the US Federal Reserve System to proceed with its second phase of investment for an additional 10% of KeyCorp.
This move will increase Scotiabank’s stake in US regional lender KeyCorp to 14.9%.
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In August 2024, Scotiabank disclosed that it plans to acquire a 14.9% stake in KeyCorp for around $2.8bn through a two-phase approach.
The initial phase, which helped Scotiabank secure a 4.9% stake in KeyCorp, was completed in August.
KeyCorp has a presence across 15 states and operates around 1,000 branches.
It provides a suite of services, including commercial and retail banking, in addition to investment advice.
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By GlobalDataScotiabank anticipates that this investment will positively impact its earnings per share in the first year following the completion of the additional investment.
Under the agreement, Scotiabank can nominate two individuals to KeyCorp’s board of directors, including a senior officer and an independent third-party director, pending KeyCorp’s consent.
Last month, Scotiabank appointed Steven Van Wyk to its board of directors, with immediate effect.
Scotiabank, a provider of financial services including personal and commercial banking, wealth management, private banking, corporate and investment banking, and capital markets, has assets worth nearly $1.4tn as of 31 July 2024.
The bank is listed on both the Toronto Stock Exchange and New York Stock Exchange.
