KeyCorp (KEY) touches a 52-week high on the news of strategic investment by the Bank of Nova Scotia (BNS). The initiative is expected to be accretive to KeyCorp's 2025 and 2026 earnings and drive NII.

Major U.S. equities indexes were little changed on Monday. Fresh off a week of volatile trading driven by economic concerns, key data on inflation, retail sales, and the housing market will be in focus this week for those trying to assess the health of the economy.

KeyBank (NYSE: KEY ) is among today's biggest movers, with KEY stock surging by as much as 14% this morning. This is in response to news that Canadian lender Bank of Nova Scotia (NYSE: BNS ), also known as Scotiabank, has acquired 14.9% of the regional U.S. lender for $2.8 billion.

Bank of Nova Scotia agreed to buy a minority stake in KeyCorp, which was among the US regional banks hit hardest in last year's tumult, for about $2.8 billion as part of a focus on North America. Christine Dobby reports.

Chris Gorman, KeyCorp CEO, joins 'Money Movers' to discuss Scotiabank's stake in Keycorp, how Keycorp was able to get the financing it did, and what Scotiabank is getting out of the deal.

Shares of KeyCorp (KEY) jumped Monday morning after announcing that the Bank of Nova Scotia (BNS) acquired a 14.9% stake in the bank, valued at roughly $2.8 billion.

Canadian bank Scotiabank plans to acquire a 14.9% stake in Cleveland-based KeyCorp, which operates about 1,000 KeyBank branches in 15 U.S. states and provides corporate and investment banking products. Pending regulatory approval, Scotiabank expects to close the initial investment of 4.

Scotiabank (TSX:BNS) announced it will acquire a 14.9% stake in US financial services firm KeyCorp (NYSE:KEY) in a deal valued at approximately $2.8 billion. The Canadian bank will purchase 163 million of KeyCorp (NYSE:KEY)'s shares at a fixed price of $17.17 per share.

For Scotiabank, the deal adds to returns for shareholders and gives them a bigger footprint in North America.

KeyCorp.'s stock KEY, +0.48% jumped 4.6% early Monday, after the regional bank said it has reached an agreement with Canadian lender The Bank of Nova Scotia BNS, +0.94% BNS, +0.87% under which the latter will invest about $2.8 billion, equal to a 14.9% stake, for $17.17 a share. The stock closed Friday at $14.61.

TORONTO , Aug. 12, 2024 /PRNewswire/ - Scotiabank announced today that it has entered into an agreement to acquire an approximate 14.9% pro-forma ownership stake in KeyCorp through an issuance of common shares at a price of $17.17 per share, representing an 11% premium to the volume weighted average price for the last 20 trading days. The total cash consideration is approximately US$2.8 billion (the "Investment").

Opportunistic capital raise on attractive terms Accelerates capital and earnings improvement; capital raise estimated to result in pro forma CET1 of 12.4% Further strengthens Key's capacity for growth  CLEVELAND , Aug. 12, 2024 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced it has reached an agreement under which The Bank of Nova Scotia ("Scotiabank") (TSX: BNS) (NYSE: BNS) will make a strategic minority investment in KeyCorp of approximately $2.8 billion, representing approximately 14.9% pro forma common stock ownership, for a fixed price of $17.17 per share. "Scotiabank approached us with a unique opportunity to raise capital on attractive terms.