National Bank of Canada has secured the final approval from the Minister of Finance to proceed with its acquisition of Canadian Western Bank (CWB).
This acquisition, valued at C$5bn ($3.47bn), was signed in June 2024.
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As per the initial agreement, each CWB share, excluding those held by National Bank, will be exchanged for 0.450 of a common share of National Bank.
The swap ratio valued each CWB share at C$52.24, marking a 110% premium over the closing price of C$24.89 on 11 June 2024.
As a full-service bank in Canada, CWB focuses on servicing businesses, their owners, and families.
It offers services in business and personal banking, equipment financing, trust services, and wealth management through its 39 branches across Western Canada and Ontario.
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By GlobalDataThis acquisition is expected to increase National Bank’s commercial banking portfolio by nearly 52%, boosting loan and revenue diversification.
The combination of National Bank and CWB aims to bring together complementary banks with established positions in Western Canada.
With a larger network and combined resources, National Bank aims to increase its banking and wealth management activities.
This will enable the bank to offer more competitive products and services, providing customers with more options and better value.
CWB retail customers are also expected to benefit from an expanded product offering and digital platform.
Small business clients can utilise National Bank’s cash and risk management solutions, while commercial clients will gain access to National Bank’s leading capital markets franchise.
The deal previously received approvals from the Office of the Superintendent of Financial Institutions and the Competition Bureau, with CWB shareholders voting in its favour in September.
The transaction is expected to be completed on 3 February 2025, with National Bank including CWB in its consolidated financial results from the second quarter of 2025.
