(Toronto) Scotiabank announced that it has completed the first step in its investment in KeyCorp with the acquisition of a 4.9% stake in the U.S. bank.
The Canadian bank said it paid $17.17 per share, or about $800 million, for the stake.
Scotiabank announced earlier this month an agreement to acquire a 14.9% stake in KeyCorp in two parts.
The second phase of the investment includes the acquisition of the remaining 10% and is expected to close in fiscal 2025, subject to regulatory approval.
KeyCorp operates in 15 states with approximately 1,000 branches offering commercial, retail and investment banking services and advice.
Scotiabank CEO Scott Thomson said the investment in KeyCorp represents a low-cost, low-risk approach to deploying capital in the U.S. market.