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Minister of Finance approves National Bank's acquisition of Canadian Western Bank.
Approval concludes the regulatory process, following reviews by the Office of the Superintendent of Financial Institutions (OSFI) and the Competition Bureau.
Closing expected to occur on February 3, 2025.
MONTREAL and EDMONTON, AB, Dec. 20, 2024 /CNW/ - National Bank of Canada ("National Bank") (TSX: NA) welcomes the decision by the federal Minister of Finance to approve the previously announced acquisition of Canadian Western Bank ("CWB") (TSX: CWB).
National Bank of Canada Logo (CNW Group/National Bank of Canada)
"We are pleased that the transaction has received final approval from the Minister of Finance. This is great news for Canadians and will allow our two complementary banks to unite and enhance services for our clients. This approval marks the conclusion of a thorough regulatory process, having already received clearance from the Office of the Superintendent of Financial Institutions (OSFI) and the Competition Bureau. I want to thank those involved for their diligent review of this important transaction. A new and exciting chapter is beginning for National Bank and CWB as we come together. We are strengthening National Bank's position across the country and allowing for more growth in Western Canada, building on the excellent reputation and solid foundation set by CWB," said Laurent Ferreira, President and CEO of National Bank.
"This is a fantastic outcome for our clients, our teams and the communities in which we operate. We're excited to join forces with National Bank to offer our clients access to a more comprehensive product and service platform on a national scale. We look forward to continuing to support our clients with the same highly personalized service and regional expertise we've always been known for," said Chris Fowler, President and CEO of CWB.
Following this last remaining approval, National Bank and CWB will work together to ensure a smooth transition to National Bank for CWB clients and employees, who will receive additional information shortly, as both banks work towards completing the transaction.
National Bank intends to provide relevant financial information related to the transaction upon the release of its first quarter results, scheduled for February 26, 2025. As we expect this transaction to be completed on February 3, 2025, National Bank will include CWB in its consolidated financial results starting in the second quarter of 2025.
About National Bank With $462 billion in assets as at October 31, 2024, National Bank of Canada is one of Canada's six systemically important banks. The Bank has approximately 30,000 employees in knowledge-intensive positions and operates through three business segments in Canada: Personal and Commercial Banking, Wealth Management and Financial Markets. A fourth segment, U.S. Specialty Finance and International, complements the growth of its domestic operations. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media.
About CWB CWB is the only full-service bank in Canada with a strategic focus to meet the unique financial needs of businesses and their owners. CWB provides its nationwide clients with full-service business and personal banking, specialized financing, comprehensive wealth management offerings, and trust services. Clients choose CWB for a differentiated level of service through specialized expertise, customized solutions, and faster response times relative to the competition. CWB people take the time to understand its clients and their business, and work as a united team to provide holistic solutions and advice.
As a public company on the TSX, CWB trades under the symbols "CWB" (common shares), "CWB.PR.B" (Series 5 preferred shares) and "CWB.PR.D" (Series 9 preferred shares). CWB is firmly committed to the responsible creation of value for all its stakeholders and its approach to sustainability will support its continued success. Learn more at www.cwb.com.
FORWARD-LOOKING INFORMATION
From time to time, National Bank and CWB make written and verbal forward-looking statements. Statements of this type are included in this press release and may be included in filings with Canadian and U.S. securities regulators or in other communications such as media releases and corporate presentations. Forward-looking statements in this press release may include, but are not limited to, statements regarding the expected benefits of the transaction, National Bank's integration of CWB and the expected closing date of the transaction. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", "may increase", "may impact", "goal", "focus", "potential", "proposed" and other similar expressions, or future or conditional verbs such as "will", "should", "would" and "could".
By their very nature, forward-looking statements involve numerous assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that National Bank's and/or CWB's predictions, forecasts, projections, expectations, and conclusions will not prove to be accurate, that National Bank's and/or CWB's assumptions may not be correct, and that National Bank's and/or CWB's strategic goals will not be achieved. Assumptions underlying forward-looking statements included in this press release also include the satisfaction of the remaining conditions to closing of the transaction and timing of completion of the transaction.
Forward-looking statements in this press release are based on a number of assumptions and are subject to risk factors, many of which are beyond National Bank's and CWB's control and the impacts of which are difficult to predict. These risk factors include, but are not limited to, National Bank's inability to successfully integrate CWB upon completion of the transaction; the possible delay or failure to close the transaction; the potential delay or failure to realize the anticipated benefits from the transaction; National Bank's reliance upon publicly available information of CWB; potential undisclosed costs or liability associated with the transaction; National Bank or CWB being adversely impacted during the pendency of the transaction; and assumptions about future events, including economic conditions and proposed courses of action, based on National Bank and CWB management's assessment of the relevant information available as of the date hereof; and National Bank's and CWB's ability to anticipate and manage the risks associated with these factors. It is important to note that the preceding list is not exhaustive of possible factors.
Additional information about certain factors and additional risk factors can be found in the "Risk Management" section of CWB's 2024 Annual MD&A, in the "Risk Management" section of National Bank's 2024 Annual Report, as well as in other reports and documents filed by National Bank and CWB with securities regulators or securities commissions from time to time and other documents that National Bank and CWB makes public. These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could cause CWB's and/or National Bank's actual results to differ materially from the expectations expressed in such forward-looking statements. Any forward-looking statements contained in this press release represent CWB's and National Bank's views as of the date hereof. Unless required by law, neither CWB or National Bank undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by or on behalf of CWB or National Bank. CWB and National Bank caution investors that these forward-looking statements are not guarantees of future performance and that actual events or results may differ significantly from these statements due to a number of factors.
