Canadian Tire Acquires Bank of Nova Scotia's Stake in its Financial-Services Arm for C$895 Million

Adriano Marchese

Canadian Tire said it has regained full ownership of its financial-services arm after acquiring the Bank of Nova Scotia's stake in Canadian Tire Financial Services for 895 million Canadian dollars ($647.3 million).

The Canadian retailer said Tuesday that the acquisition of the bank's 20% stake in CTFS will allow greater flexibility to deliver more value to its 11 million active loyalty members, including 2.3 million credit-card holders.

Scotiabank first acquired the stake in Canadian Tire's financial services business for $500 million in 2014.

Canadian Tire will record a charge of C$328 million related to the transaction in its third-quarter results. Scotiabank will continue to provide a committed credit facility of C$1.1 billion to CTFS for the next 18 months.

Canadian Tire said its financial-services arm plays a key role in its Triangle Rewards loyalty program, which represents about three-quarters of all Canadian Tire Money issued to members annually.

Chief Executive Greg Hicks said the move allows Canadian Tire to expedite elements of the Triangle Rewards strategy to stay relevant to customers' changing needs as well as to expand its credit-card program.

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

(END) Dow Jones Newswires

October 31, 2023 08:41 ET (12:41 GMT)

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