National Bank of Canada has announced its plans to acquire Canadian Western Bank (CWB) in a deal worth approximately $5 billion. The acquisition is part of National Bank's strategic plan to accelerate growth across all its business lines in Canada.National Bank will acquire all of the issued and outstanding common shares of CWB by way of a share exchange, valuing CWB at approximately $5 billion. The acquisition is expected to be accretive to adjusted EPS on run-rate cost and funding synergies, with National Bank identifying $270 million of pre-tax annual cost and funding synergies.The combined bank will have a stronger presence in Western Canada, with a larger network and joint resources to increase banking and wealth management activities. CWB customers will benefit from access to National Bank's leading capital markets franchise, while National Bank customers will gain access to CWB's expertise in equipment finance and trust services, said a press release Tuesday from the banks.The acquisition is subject to approval by CWB shareholders and regulatory approvals, with the transaction expected to close by the end of 2025. The deal is not subject to any financing condition, and National Bank has secured a subscription receipt offering of $1 billion to fund the acquisition.Laurent Ferreira, President and CEO of National Bank, stated that the transaction is about growth and brings together two banks with complementary footprints in personal and commercial banking. Chris Fowler, CEO of CWB, expressed confidence that the combination will create incredible value for clients, teams, communities, and shareholders.National Bank has committed to maintaining a strong presence in Edmonton, with executive and operational leaders based out of the city.
