BANGALORE Bank of Nova Scotia (BNS.TO) said it will buy a near 20 percent stake in Bank of Guangzhou for about C$719 million, to expand its footprint in China.
Scotiabank expects the deal to add to earnings next year, it said in a statement on Friday.
Guangzhou Bank, which is not publicly listed and is primarily government-owned, has been looking to get listed in Shanghai and last year invited bids from foreign investors for a 20 percent stake.
Scotiabank, which emerged as the winning bidder, expects the deal to close by December this year.
($1 = 0.984 Canadian Dollars)
(Reporting by Gowri Jayakumar in Bangalore; Editing by David Cowell)