Canadian Tire Corporation Limited has struck an agreement to purchase the 20% share in Canadian Tire Financial Services presently held by Scotiabank. The deal, worth $895 million, reinstates the retailer’s complete possession of the business.
According to Greg Hicks, the CEO of Canadian Tire, the acquisition paves the way for greater managerial control and agility over its Triangle Rewards loyalty program. The company plans on evaluating potential strategic directions for its financial services division in light of this transaction.
Canadian Tire Corp. is considering various aspects to establish an optimal ownership structure for its financial services enterprise. These considerations encompass the future trajectory of its Triangle Rewards program and its credit card portfolio management.
Associated with this significant transaction, Canadian Tire will register a charge of $328 million. The agreement signifies a substantial shift in the internal financial dynamics of the company, returning the ownership back to its original holder and opening up possibilities for more autonomous decision-making and strategic development.
