Fairstone Bank of Canada is set to acquire Laurentian Bank of Canada for $1.9 billion in cash. The agreement marks a strategic move aimed at enhancing Fairstone’s presence in the financial sector.
Details of the Acquisition
As part of the acquisition, Laurentian Bank will divest its retail and small-and-medium-sized business banking portfolios. Additionally, its syndicated loan portfolio will be sold to National Bank of Canada.
Statements from Leadership
Laurentian Bank’s CEO, Eric Provost, emphasized that this partnership with Fairstone will facilitate growth in its specialized commercial business. He also highlighted that Laurentian Bank will retain its brand identity and head office in Montreal.
Impact on Employees and Branches
Under the terms of the deal with National Bank, there will be no transfer of Laurentian Bank branches or employees to the National Bank, ensuring job security for its current workforce.
Financial Terms of the Deal
- Fairstone Bank will pay $40.50 per share in cash for Laurentian Bank’s shares.
- National Bank’s payment will depend on outstanding balances at the time of closing.
Shareholder Approval Required
The acquisition by Fairstone is contingent upon receiving approval from Laurentian Bank shareholders. A two-thirds majority vote is required to finalize the agreement.
This acquisition is a significant development in the Canadian banking landscape and is expected to reshape the offerings within retail and commercial banking sectors.
