(Toronto) Canadian Tire Corporation announced Tuesday the signing of an agreement to buy back the 20% stake in Canadian Tire Financial Services owned by Scotiabank for $895 million.
The move restores the retailer’s full ownership of the company.
Canadian Tire CEO Greg Hicks argued the deal would give the company more control and flexibility over its Triangle Rewards loyalty program.
It also suggests that it will evaluate various strategic alternative solutions for its financial services sector in 2024.
The retailer said it will place particular emphasis on optimizing Canadian Tire Financial Services’ capital structure as well as creating sustainable value within its rewards program and credit card portfolio. Triangle.
Canadian Tire will report a $328 million charge related to the transaction in its third quarter financial results.
For its part, Scotiabank said the sale would allow it to record an after-tax profit of about 319 million in its fourth-quarter results and said the transaction would increase its Tier 1 capital ratio by about 16 basis points.
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