National Bank Acquires Canadian Western Bank in $5 Billion Deal

14 Jun, 2024

National Bank Acquires Canadian Western Bank in $5 Billion Deal

Canada's banking sector is seeing further consolidation as National Bank of Canada has struck an all-share deal to acquire Canadian Western Bank, valuing the lender at about $5 billion. This acquisition will expand Quebec-focused National Bank’s reach by taking over Canadian Western's operations in Alberta and British Columbia.

“This transaction will accelerate National Bank's strategic plan and pan-Canadian growth,” said chief executive Laurent Ferreira. National Bank, Canada’s sixth-largest bank, anticipates that this acquisition will significantly enhance its western footprint, creating a stronger national competitor.

Canadian Western Bank serves approximately 65,000 clients through 39 branches, mostly in B.C. and Alberta. This acquisition will expand National Bank's presence in these regions, where it currently has minimal operations. Additionally, National Bank will increase its lending portfolio outside Quebec by 37% through Canadian Western's $37 billion in commercial-focused loans.

The share exchange deal values each Canadian Western share at $52.24, a 110% premium over its recent closing price. National Bank will maintain Canadian Western's headquarters, and two nominees from Canadian Western will join National's board. The transaction is expected to close by the end of next year, subject to regulatory and shareholder approval.