Scotiabank has agreed to acquire an approximate 14.9% pro-forma ownership stake in KeyCorp through an issuance of common shares for US$17.17 per share.

The total cash consideration amounts to approximately US$2.8 billion. KeyCorp, a leading U.S.-based financial services company, operates in 15 states, managing US$187 billion in assets and approximately 1,000 branches that provide commercial and retail banking, along with investment advice and services. The investment will be carried out in two phases: an initial 4.9% stake followed by an additional 10% stake, culminating in a total pro forma ownership of roughly 14.9%.