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Oct 31, 2023

Canadian Tire Corporation takes back control of financial services arm

Canadian Tire Corporation, Limited (CTC) has completed the repurchase of Scotiabank's 20 percent stake in Canadian Tire Financial Services (CTFS). This transaction restores CTC's full ownership of its financial services arm. The retailer says the transaction will enhance its flexibility in delivering added value to its more than 11 million active loyalty members, including its 2.3 million credit card holders. CTFS plays a pivotal role in the company's Triangle Rewards loyalty program, representing approximately 75 percent of all Canadian Tire Money issued to members annually.

Triangle Rewards is a cornerstone of CTC's Better Connected strategy, driving significantly higher sales per member and sustained growth over time. Engaged Triangle Rewards members spend, on average, more than twice as much as non-members, and those with a Triangle credit card represent some of CTC's most valued and engaged customers.

CTC will evaluate strategic alternatives for its financial services business to be undertaken with Goldman Sachs as the company's financial advisor during 2024. Consideration will be given to the optimal ownership structure of the CTFS business and to driving sustainable value in the Triangle Rewards program and credit card portfolio, building on CTFS' strong track record of long-term growth. 

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