Scotiabank and Fortis Inc. have inked a deal that will see Scotiabank acquire the deposits and loans of Fortis Trust Corp. a subsidiary of Fortis Inc. The transaction is expected to close in June, subject to regulatory approvals. Terms of the agreement were not disclosed.

Fortis Trust is a financial institution specializing in residential mortgages and retail deposits with operations in Newfoundland and Prince Edward Island. Both parties say they will work closely together to ensure a smooth transition for customers whose business will be transferred.

“This transaction presents an opportunity to capture the value created in Fortis Trust since we acquired the business in 1989,” said Stan Marshall, president and CEO, Fortis Inc.

“Scotiabank is committed to ensuring a smooth transition for former Fortis Trust customers,” said Francis Power, Scotiabank district vice-president, Newfoundland & Labrador. “We are pleased with this purchase, which will further increase our local market share and strengthen our position in Newfoundland.”