- National Bank of Canada (TSX:NA) cleared the antitrust hurdle of its proposed acquisition of Canadian Western Bank (TSX:CWB) as the Competition Bureau approved the deal.
- The transaction also requires approval by the Office of the Superintendent of Financial Institutions and the Minister of Finance
- If the remaining conditions are satisfied, the deal is expected to be completed in 2025.
- Shares of National Bank of Canada opened at C$127.30, and Canadian Western Bank stock was up 3.8 per cent Thursday.
National Bank of Canada (TSX:NA) cleared the antitrust hurdle of its proposed acquisition of Canadian Western Bank (TSX:CWB) on Thursday when Canada’s Competition Bureau approved the deal.
The proposed transaction also requires approval by the Office of the Superintendent of Financial Institutions and the Minister of Finance. If the remaining conditions are satisfied, the transaction is expected to be completed in 2025.
“We are pleased that the Competition Bureau has concluded its review of this transaction, and to have its approval to bring together these two great banks which have a complementary footprint in personal and commercial banking. Once the remainder of the regulatory approvals processes are complete, we look forward to joining forces with the CWB team so that together, we deliver a stronger banking choice for all Canadians and Canadian businesses,” Laurent Ferreira, president and CEO of National Bank, said in a statement.
The deal announced in June would see National Bank pay C$5 billion or C$52.24 per share for Edmonton-based CWB. The acquisition will grow National Bank’s commercial banking portfolio by 52 per cent, driven by Canadian Western Bank’s C$37 billion in loans, and allow it to increase products and services across a larger network at a more competitive price.
“This positive news from the Competition Bureau is a major step forward in uniting National Bank and CWB,” Chris Fowler, CEO of CWB, said. “This decision preserves the tremendous value the transaction represents for our clients, teams, communities and shareholders.”
Earlier this month, CWB shareholders approved the proposal to acquire all of the issued and outstanding CWB common shares by way of a share exchange. The resolution approving the transaction was approved by 99.78 per cent of the votes cast by CWB Shareholders, according to a news release.
About National Bank
Montreal-based National Bank is one of Canada’s Big Six banks with C$454 billion in assets as of July 31, 2024, spread across personal and commercial banking, wealth management, financial markets, and U.S. specialty and international finance.
About Canadian National Bank
CWB has a market cap of $5.14 billion and provides its nationwide clients with full-service business and personal banking, specialized financing, comprehensive wealth management offerings, and trust services.
Shares of National Bank of Canada (TSX:NA) opened at C$127.30 Thursday. The stock is up 26.04 per cent this year.
Shares of Canadian Western Bank (TSX:CWB) were up 3.8 per cent, trading at C$53.36 at 9:31 am Thursday. The stock is up 72.21 per cent this year.
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