Government launches consultations on National Bank’s proposed acquisition of Canadian Western Bank

From: Department of Finance Canada

News release

November 5, 2024 - Ottawa, Ontario - Department of Finance Canada

Today, the Department of Finance is launching consultations to help inform the Minister of Finance’s decision regarding National Bank of Canada’s proposed acquisition of Canadian Western Bank, which was first announced on June 11, 2024.

As stipulated in the Bank Act, all acquisitions and amalgamations in Canada’s banking sector are subject to the approval of the Minister of Finance, who must take into account all matters she considers relevant. These may include:

  • The rights and interests of consumers, business customers, and employees;
  • The impact of the transaction on the level of competition in the sector;
  • The consequences of the stability and integrity of the financial sector and public confidence in it;
  • Whether the acquisition is in the best interests of the financial system; and,
  • Whether the acquisition is in the best interests of those living in an affected region.

The proposed acquisition would require an additional approval from the Minister of Finance to recategorize Canadian Western Bank and exempt it from the requirement that its shares be widely held. In addition to the regulatory review by the Office of the Superintendent of Financial Institutions and by the Competition Bureau, which concluded in September 2024, comments received during this consultation process will help inform the Minister of Finance’s decision, and can be submitted to transactions@fin.gc.ca by November 19, 2024, with “NBC/CWB” in the subject line.

Quick facts

  • National Bank of Canada is a Montreal-based Schedule I bank. It is currently Canada’s 6th largest bank and is a leader in the Quebec market. 

  • Canadian Western Bank is an Edmonton-based Schedule I bank. It began as a regional financial institution in Western Canada and primarily operates in Alberta, British Columbia, Saskatchewan, Manitoba, and Ontario.

  • As part of the proposed acquisition, National Bank of Canada has committed to:

    • Increase banking services across Canadian Western Bank’s client base;
    • Maintain Canadian Western Bank’s executive and operational presence in Edmonton;
    • Deepen investment in Western Canada; and,
    • Appoint two Canadian Western Bank directors to National Bank’s board.

  • On July 10, 2024, the Competition Bureau launched its review of the proposed acquisition. On September 25, 2024, the Competition Bureau issued a No Action Letter, which indicates that the Commissioner of Competition does not intend to challenge the proposed acquisition.

  • The Office of the Superintendent of Financial Institutions (OSFI) will administer the application process, as well as provide a recommendation to the Minister of Finance. 

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Contacts

Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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