KeyCorp Shares Up, Bank of Nova Scotia Down on $2.8 Billion Strategic Investment in KeyCorp

By Adriano Marchese

KeyCorp shares rose Monday while Bank of Nova Scotia stock fell after agreeing to a $2.8 billion investment for a minority stake in KeyCorp.

KeyCorp shares were trading nearly 13% higher at $16.51, while shares of Scotiabank were trading 3.1% lower in Toronto at 61.75 Canadian dollars ($ 44.97).

Scotiabank, a Canadian financial institution, will pay $17.17 a share to acquire a 14.9% ownership interest in KeyCorp, a move that is expected to open new commercial opportunities and strengthen its foothold in the U.S. market.

KeyCorp, which is based out of Cleveland, Ohio, operates about 1,000 branches across 15 states and has $187 billion in assets. The company offers commercial and retail banking, as well as investment advice and services.

Through the acquisition, the two companies also plan to explore commercial opportunities to partner together in the future to serve their respective client bases.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

August 12, 2024 10:09 ET (14:09 GMT)

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