June 12th, 2024

National Bank to buy Canadian Western Bank in deal valuing CWB at $5B

By The Canadian Press on June 11, 2024.

A National Bank sign is seen Monday, May 30, 2016 in Montreal. THE CANADIAN PRESS/Paul Chiasson

MONTREAL – National Bank of Canada says it is purchasing Canadian Western Bank in a share exchange transaction that values the Edmonton-based lender at approximately $5 billion.

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.

The deal will see each CWB share, other than those already held by National, exchanged for 0.45 of a common share of National Bank.

It says 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.

This report by The Canadian Press was first published June 11, 2024.

Companies in this story: (TSX:NA, TSX:CWB)

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