National Bank to buy Edmonton-based Canadian Western Bank in $5B deal

National Bank of Canada says it is purchasing Canadian Western Bank in a share exchange transaction that values the Edmonton-based lender at approximately $5 billion.

The companies say the deal brings together two complementary banks with growing businesses and the combined entity will offer national scale while maintaining a regionally focused service model.

The deal will see each CWB share, other than those already held by National, exchanged for 0.45 of a common share of National Bank.

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It says the exchange ratio values each CWB share at $52.24, representing a 110-per-cent premium to Tuesday’s closing price of $24.89.

The deal is subject to certain customary conditions and must be approved by regulators and two-thirds of Canadian Western Bank’s shareholders.

The transaction is expected to close by the end of next year.