National Bank of Canada Completes Acquisition of Canadian Western Bank Stake
Toronto, Tuesday, 4 February 2025.
National Bank of Canada finalizes its acquisition of a 94.1% stake in Canadian Western Bank, enhancing its growth potential in Western Canada and strengthening its influence in the financial sector.
Transaction Details
National Bank of Canada (TSX: NA) has successfully completed the acquisition of the remaining 94.1% stake in Canadian Western Bank (TSX: CWB) for CAD 4.9 billion [1]. The transaction, which closed on February 3, 2025, was executed through a share exchange ratio of 0.450 National Bank shares for each CWB share [1]. The total equity value of the deal reached CAD 5.6 billion [1], marking one of the most significant banking sector consolidations in recent Canadian history.
Regulatory Approvals and Timeline
The acquisition proceeded following a series of crucial regulatory approvals. CWB shareholders gave their approval on September 3, 2024, followed by Competition Bureau clearance on September 26, 2024, and the Minister of Finance’s approval on December 20, 2024 [1]. As a result of the completion, CWB common shares will be delisted from the Toronto Stock Exchange effective February 4, 2025 [1], and removed from both the S&P/TSX Composite and S&P/TSX Canadian Dividend Aristocrats Index [1].
Leadership Transition
The acquisition brings significant leadership changes. Chris Fowler, the current President and CEO of CWB, will retire on March 1, 2025, and will continue serving as Executive Advisor to Laurent Ferreira, President and CEO of National Bank, until April 30, 2025 [1][3]. In a move to strengthen governance, National Bank has appointed Sarah Morgan-Silvester and Irfhan Rawji to its Board of Directors, effective February 3, 2025 [1].
Market Impact and Future Outlook
The market has closely monitored this strategic acquisition, with National Bank’s stock trading at CAD 127.37 as of February 3, 2025, with a trading volume of 5,711,727 shares [3]. The merger significantly expands National Bank’s presence in Western Canada, complementing its existing operations across Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International segments [3].