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BMO Makes Big U.S. Bet With $16.3 Billion Bank of the West Deal

  • BMO to finance the takeover mainly with excess capital
  • BNP Paribas plans to return some cash through buyback
Updated on

Bank of Montreal agreed to buy BNP Paribas SA’s Bank of the West unit for $16.3 billion (C$21.1 billion), extending its presence in the U.S. and giving the French seller a windfall before its new strategic plan.

BMO will fund the transaction, which should add 1.8 million customers upon closing next year, in cash and mainly with excess capital, according to a statement on Monday. Bloomberg had previously reported the Canadian bank’s interest.