Home News Canadian Tire Reclaims Ownership of Financial-Services Arm

Canadian Tire Reclaims Ownership of Financial-Services Arm


Canadian Tire, a leading Canadian retailer, recently announced that it has regained full ownership of its financial-services arm by acquiring the Bank of Nova Scotia’s stake in Canadian Tire Financial Services (CTFS) for 895 million Canadian dollars ($647.3 million).

Enhancing Value for Loyalty Members

This acquisition will provide Canadian Tire with greater flexibility to deliver more value to its 11 million active loyalty members, including 2.3 million credit-card holders. The company aims to leverage this opportunity to enhance its loyalty program and strengthen its relationship with customers.

A Brief History

The Bank of Nova Scotia initially acquired a 20% stake in CTFS back in 2014 for $500 million. Now, Canadian Tire has successfully repurchased the stake and taken full control of its financial-services arm.

Financial Implications

Canadian Tire will incur a charge of C$328 million related to this transaction, which will be reflected in its third-quarter results. However, Scotiabank, the previous stakeholder, will continue to provide a committed credit facility of C$1.1 billion to CTFS for the next 18 months.

The Role of CTFS in the Triangle Rewards Program

Canadian Tire’s financial-services arm plays a crucial role in the company’s Triangle Rewards loyalty program. This program represents approximately three-quarters of all Canadian Tire Money issued to members annually. With complete ownership of CTFS, Canadian Tire can expedite elements of the Triangle Rewards strategy and adapt swiftly to customers’ evolving needs. Additionally, the company plans to expand its credit-card program as part of its growth strategy.


Please enter your comment!
Please enter your name here

61  +    =  65