National Bank to buy Canadian Western Bank
MONTREAL — Canada’s banking sector is facing further consolidation as National Bank of Canada has reached an all-share deal to acquire Canadian Western Bank that values the lender at about $5 billion.
The deal will see Quebec-focused National Bank expand its geographic reach as it takes over Canadian Western’s operations, which are concentrated in Alberta and British Columbia.
“This transaction will accelerate National Bank’s strategic plan and pan-Canadian growth,” chief executive Laurent Ferreira said on a conference call.
The deal comes just months after Royal Bank of Canada closed its $13.5-billion acquisition of HSBC Canada, which drew criticism for increasing market concentration as it meant the loss of what was the country’s seventh-largest bank.
National Bank, the sixth largest in Canada, said its acquisition of Canadian Western will significantly expand its western footprint and create a stronger national competitor.
Canadian Western has about 65,000 clients and 39 branches, 30 of which are in B.C. and Alberta, where National Bank currently has only three in each, compared with 280 in Quebec.
The deal also means National will expand its lending portfolio outside of Quebec by 37 per cent as it takes on Canadian Western’s $37 billion in commercial-focused loans.
“We will create a stronger full-service, coast-to-coast competitor, providing more choices to individuals, entrepreneurs and businesses across the country,” Ferreira said.
National Bank plans to expand its full-service offerings through Canadian Western Bank, including its digital capabilities for all clients, while also offering wealth-management and risk-advisory services, areas where it said there is little overlap with Canadian Western.
“We will work
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