Bank of Nova Scotia will purchase 20 percent of Canadian Tire Corp Ltd's financial services business for C$500 million ($459 million) in cash, the companies said on Thursday.The bank, Canada's No. 3 lender, will also supply up to C$2.25 billion of credit card receivable financing to Canadian Tire's financial services business.Credit card receivable financing is a cash advance repaid by withholding a portion of credit card transactions made at the borrower's stores.As part of the agreement, Canadian Tire has the option of selling up to a further 29 percent of its financial services business to Scotiabank within 10 years.
The Bank of Nova Scotia (the Bank) is a diversified financial institution. Shares of BNS traded higher by 0.56% or $0.34/share to $61.42. In the past year, the shares have traded as low as $52.05 and as high as $63.50. On average, 327077 shares of BNS exchange hands on a given day and today's volume is recorded at 15860.
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