National Bank to Buy Western Canada Rival for $3.6 Billion
- Canada’s sixth-biggest lender offers a 110% premium for CWB
- CWB has 39 branches, mostly in Alberta and British Columbia
The National Bank of Canada headquarters in Montreal, Quebec, Canada.
Photographer: Nasuna Stuart-Ulin/BloombergThis article is for subscribers only.
National Bank of Canada agreed to buy Canadian Western Bank for about C$5 billion ($3.6 billion) in stock in a tie-up of two of the country’s regional lenders.
The acquirer will pay the equivalent of C$52.24 a share for Canadian Western, a premium of 110% over the target’s closing price on Tuesday, according to a statement. The purchase requires the approval of the Canadian government and two-thirds of CWB’s shareholders, who are poised to vote on the proposal at a special meeting in September. The deal is expected to be completed by the end of next year.