Canadian Tire to sell 20 pct stake in financial services business

Thu May 8, 2014 7:50am EDT
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May 8 (Reuters) - Canadian Tire Corp said Bank of Nova Scotia 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. ($1 = 1.0903 Canadian Dollars) (Reporting by Ashutosh Pandey in Bangalore; Editing by Don Sebastian)