iStockphoto/hapabapa
The Canadian Press
Scotiabank says it has received regulatory approval to clear the way for the second phase of its investment in U.S. bank KeyCorp.
The big Canadian bank says the approval came from the board of governors of the U.S. Federal Reserve System.
Scotiabank announced in August a plan to acquire a 14.9% stake in KeyCorp for about US$2.8 billion in a two-step process.
The initial investment for a 4.9% stake was completed on Aug. 30.
Scotiabank says it now expects to close the second phase for an additional 10% stake in 2024.
KeyCorp operates in 15 states, with about 1,000 branches offering commercial and retail banking and investment advice and services.