National Bank to buy Canadian Western Bank
Share exchange values the Edmonton-based lender at approximately $5 billion
MONTREAL — National Bank of Canada says it is purchasing Canadian Western Bank in a share exchange that values the Edmonton-based lender at approximately $5 billion.
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The companies say the deal brings together two complementary banks with growing businesses and the combined entity will offer national scale while maintaining a regionally focused service model.
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In the deal, each CWB share, other than those already held by National, will be exchanged for 0.45 of a common share of National Bank.
National Bank said the exchange ratio values each CWB share at $52.24, representing a 110 per cent premium to Tuesday’s closing price of $24.89.
The deal is subject to certain customary conditions and must be approved by regulators and two-thirds of Canadian Western Bank’s shareholders.
The transaction is expected to close by the end of next year.
More coming.
