National Bank, Canadian Western tie-up adds to consolidation trend

Source: CityNews Halifax

TORONTO -- Canada's banking sector is going to get a little smaller.

National Bank of Canada said Tuesday it is acquiring Canadian Western Bank in an all-share deal that values CWB at about $5 billion.

It says that it will maintain branch locations as well as its Edmonton-based leadership and operations.

The deal will see Quebec-focused National Bank expand its geographic reach in Alberta and British Columbia, where CWB is concentrated.

And it comes just months after Royal Bank closed its $13.5-billion purchase of HSBC Canada in the country's largest-ever domestic banking deal.

The deal is subject to shareholder and regulatory approval and expected to close by the end of 2025.

This report by The Canadian Press was first published June 12, 2024.