Canadian Tire to sell 20 percent stake in financial services business

Thu May 8, 2014 7:51am EDT
 
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(Reuters) - Canadian Tire Corp (CTCa.TO: Quote) said Bank of Nova Scotia (BNS.TO: Quote) (BNS.N: Quote) would buy a 20 percent stake in the retailer's financial services business for C$500 million ($459 million) in cash.

The bank will have the option to buy an additional 29 percent of the business within 10 years.

Bank of Nova Scotia will also provide a funding commitment to the financial services business with credit card receivable financing of up to C$2.25 billion.

(Reporting by Ashutosh Pandey in Bangalore; Editing by Don Sebastian)