Smith Financial Corp.'s move for the lender has cleared a big hurdle
Home Capital Group Inc. has announced that its deal to be acquired by Smith Financial Corp. has cleared a key regulatory hurdle. According to the mortgage lender, the Commissioner of Competition has issued a "no-action letter" with respect to the deal that values the company at $1.7 billion.
Smith Financial Corp. announced in November 2022 that it would pay $44 in cash per share for the shares in Home Capital it did not already own.
The agreement, which was approved by shareholders in February, remained subject to regulatory approvals under the Bank Act (Canada) and the Trust and Loan Companies Act (Canada).
Home Capital offers a variety of financial services, including residential and non-residential mortgages, through its principal subsidiary, Home Trust Co.
The company has a strong presence in the Canadian market, and the acquisition by Smith Financial is expected to strengthen its position even further.
About Smith
Smith Financial Corp. is the family holding company of Stephen Smith, who is a well-known figure in the Canadian financial space.
Smith serves as the executive chairman and co-founder of First National Finance Corp., the chairman of Canada Guaranty Mortgage Insurance Co., and the co-owner of Duo Bank of Canada.
More expectations
With the regulatory hurdle now cleared, the acquisition is expected to move forward smoothly.
The deal is likely to have a significant impact on the Canadian financial industry, as it combines two major players in the mortgage and financial services space.
Overall, the acquisition of Home Capital by Smith Financial is expected to be an important development in the Canadian financial landscape.
As the deal moves closer to completion, industry watchers are reported to be keeping a close eye on the developments and their potential impact on the wider market.
