Final Milestone in Regulatory Process Complete
The Montreal-based National Bank of Canada (NBC) has announced that it has received approval from the federal finance minister to acquire Canadian Western Bank (CWB). This development marks the final milestone in the regulatory process, paving the way for the completion of the approximately $5-billion takeover on February 3, 2025.
Smooth Transition Ahead
The two banks will work together to ensure a seamless transition, with NBC’s chief executive, Laurent Ferreira, emphasizing the importance of this acquisition as a key pillar in the company’s domestic growth strategy for the coming year. The integration of CWB into NBC’s operations is expected to begin in the second quarter of 2025, with the bank’s financial results reflecting the inclusion of CWB from that period onwards.
Background on the Proposed Acquisition
In recent months, National Bank of Canada had received approvals from various regulatory bodies, including the Competition Bureau, which gave its nod to the proposed acquisition. Additionally, CWB shareholders had approved the takeover, clearing the way for NBC’s purchase of the bank. The acquisition is expected to expand NBC’s presence in Western Canada and provide opportunities for growth in the region.
National Bank CEO’s Vision
Laurent Ferreira, National Bank of Canada’s chief executive, has expressed his enthusiasm for the proposed acquisition, highlighting its potential to drive growth and expansion in the domestic market. He emphasized that the takeover is a strategic move to strengthen NBC’s position in Western Canada and enhance its capabilities in serving customers across the country.
Impact on CWB Shareholders
The takeover is expected to result in CWB becoming part of NBC, with shareholders potentially benefiting from the integration process. However, specific details regarding the treatment of CWB shares will be outlined as the acquisition progresses.
Regulatory Approvals
National Bank of Canada has received regulatory approvals from key bodies, including:
- Federal Finance Minister: The finance minister’s approval marks the final milestone in the regulatory process.
- Competition Bureau: NBC had previously received approval from the Competition Bureau to acquire CWB.
- CWB Shareholders: Shareholders approved the takeover, clearing the way for NBC’s purchase of the bank.
Next Steps
With the regulatory process complete, National Bank of Canada and Canadian Western Bank will work together to ensure a smooth transition. The integration of CWB into NBC’s operations is expected to begin in the second quarter of 2025, with financial results reflecting the inclusion of CWB from that period onwards.
Timeline for Completion
The approximately $5-billion takeover is set to be completed on February 3, 2025, marking a significant milestone in the history of National Bank of Canada and Canadian Western Bank.
