Scotiabank Sells Canadian Tire Unit Stake for $647 Million

A Canadian Tire store in Victoria, British Columbia.

Photographer: James MacDonald/Bloomberg
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Canadian Tire Corp. bought back a 20% stake in its financial-services business from Bank of Nova Scotia in a C$895 million ($647 million) all-cash transaction.

The Toronto-based retailer also said it will work next year with Goldman Sachs Group Inc. to evaluate strategic options for Canadian Tire Financial Services, which it said is now the seventh-largest credit-card issuer in Canada, with 2.3 million cardholders. The business generates C$442 million of income before taxes, Canadian Tire said.