Scotiabank Invests $2.8 Billion in KeyCorp for Strategic U.S. Expansion

The Canadian bank's minority stake aims to boost KeyCorp's profitability and solidify its North American presence.

Scotiabank will acquire a 14.9% stake in KeyCorp, becoming its largest shareholder.
The investment will be completed in two stages, with the final approval expected by Q1 2025.
KeyCorp plans to use the capital to reposition its bond portfolio and enhance profitability.
Scotiabank sees the deal as a step toward building a North American banking corridor.
KeyCorp's stock price surged following the announcement, while Scotiabank's shares dipped.