Canada’s Fairstone to Buy Laurentian in $1.4 Billion Deal

Laurentian Bank of Canada is set to become the latest small Canadian bank to exit the market after reaching an agreement to sell itself to Fairstone Bank for C$1.9 billion ($1.4 billion) while hiving off its retail banking unit to focus on commercial lending.

Fairstone will pay C$40.50 per share in cash, a 20% premium to Monday’s closing price. Prior to that deal closing, National Bank of Canada, the country’s sixth-largest lender, will acquire all of Laurentian’s retail and small-business assets and liabilities, according to a statement Tuesday.