Canada-based Scotiabank said it has agreed to buy Sun Life Financial's stake in

Canada’s CI Financial Income Fund for C$2.3 billion ($2.1 billion).

Scotiabank will pay C$22 a share in cash for a 37 per cent stake in CI Financial, the bank said in a statement.

"This announcement is a significant step forward and demonstrates Scotiabank's ongoing commitment to growing our wealth management business," said Rick Waugh, Scotiabank president and chief executive. "We have seen solid growth in our wealth management products and services. Through this agreement we gain a significant stake in one of

Canada's wealth management market leaders with a long track record of superior performance," Mr Waugh said.

CI is

Canada's number three mutual fund company by assets under management.

Scotiabank said the transaction is expected to close in approximately 45 days, following the required notifications and regulatory approvals.