A National Bank sign is seen Monday, May 30, 2016 in Montreal. THE CANADIAN PRESS/Paul Chiasson
TORONTO – Shares of Canadian Western Bank surged 70 per cent in early trading after it announced that it had struck an all-stock deal to be acquired by National Bank of Canada in an agreement that valued it at about $5 billion.
CWB shares were up $17.61 at $42.50 on the Toronto Stock Exchange on Wednesday. National Bank shares were down $6.31 at $110.03.
The deal announced after the close of trading on Tuesday will see Quebec-focused National Bank expand its geographic reach in Alberta and British Columbia, where CWB is concentrated.
CWB is expected to maintain its branch locations as well as its Edmonton-based leadership and operations.
The deal 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.
Companies in this story: (TSX:NA, TSX:CWB)
