National Bank of Canada to Acquire Canadian Western Bank: Creating a Stronger Competitor and More Choice for Canadians

National Bank of Canada and Canadian Western Bank have announced a definitive agreement for National Bank to acquire CWB, a diversified financial services institution based in Edmonton, Alberta. This strategic move is aligned with National Bank’s plan to accelerate growth across all its business lines in Canada.

The acquisition will provide customers with an expanded product and service offering nationally, an extensive banking center network, and a common customer experience culture. The transaction values CWB at approximately $5.0 billion and will create a stronger competitor in the Canadian banking sector, offering more choice for Canadians.

Laurent Ferreira, President and CEO of National Bank, expressed excitement about the combination, stating that it will provide customers with access to a broader range of services, expertise, and products. Chris Fowler, CEO of CWB, also highlighted the value creation opportunities and the benefits of joining forces.

The transaction is expected to be accretive to adjusted EPS and will bring about $270 million of pre-tax annual cost and funding synergies. National Bank plans to maintain a CET1 ratio above 12.75% at close. Each CWB Share will be exchanged for 0.450 of a National Bank Share, representing a premium to the closing price of CWB Shares.

The Transaction is subject to approval by CWB shareholders and regulatory approvals, with the closing expected by the end of 2025. National Bank also announced an equity financing of approximately $1.0 billion in connection with the Transaction.

The acquisition will create a Canadian banking leader with growth priorities from coast-to-coast, expand services for Canadian banking and wealth management customers, invest in the future of the Western Canadian economy, deepen commitments to communities, and welcome new talent to the National Bank family.

Overall, the acquisition of CWB by National Bank marks a significant milestone in the Canadian banking sector, promising enhanced services, growth opportunities, and value creation for customers and shareholders alike.