Finance minister seeks public opinion on the multi-billion deal
Canada’s Department of Finance is inviting public input as it reviews National Bank of Canada’s proposed $5 billion acquisition of Canadian Western Bank (CWB).
The decision lies with Finance Minister Chrystia Freeland, who holds final authority over mergers and acquisitions involving financial institutions under Canadian law.
In a statement, the finance ministry highlighted that Minister Freeland would consider factors such as consumer rights, competition, and the stability of the financial sector in her review.
"The minister of finance is ultimately responsible for determining whether or not the proposed acquisition will be approved and whether any conditions should be imposed," the ministry said in a Press release.
If approved, this share-swap transaction would grant Montreal-based National Bank, a leading player in Quebec and the smallest of Canada’s “Big Six” chartered banks, a significant foothold in western Canada, particularly in Alberta and British Columbia. The deal has the backing of major financial entities, including Canada’s pension fund, Caisse de Dépôt et Placement.
Edmonton-headquartered Canadian Western Bank focuses on serving clients across Alberta, British Columbia, Saskatchewan, Manitoba, and Ontario, supporting local industries in energy and mining. Following the takeover announcement in June, CWB’s stock price has more than doubled on the Toronto Stock Exchange, reaching $57.23.
Regulatory and review process
The proposed acquisition has already undergone scrutiny by the Competition Bureau and the Office of the Superintendent of Financial Institutions (OSFI). The Competition Bureau completed its assessment in September 2024, issuing a No Action Letter, signalling it would not oppose the merger.
Additionally, the OSFI will oversee the application process and submit a recommendation to Minister Freeland.
The finance ministry stated that under the Bank Act, the minister must weigh various aspects of the acquisition’s impact, including:
- Consumer rights, including those of business customers and employees;
- The competitive landscape of Canada’s banking sector;
- The potential effects on financial stability and public confidence;
- Whether the acquisition aligns with the financial system’s best interests;
- The overall benefits for residents in regions affected by the acquisition.
National Bank has outlined several commitments to ensure continuity and support for Canadian Western Bank’s clients and employees. These include increasing banking services for CWB’s existing client base, maintaining the executive team and operations in Edmonton, expanding investments in western Canada, and appointing two Canadian Western Bank board members to National Bank’s board.
Read more: National Bank's CWB purchase takes another step forward
The transaction also includes a request for an exemption from regulations requiring Canadian Western Bank shares to be widely held, contingent upon the finance minister’s approval.
Public feedback is open until November 19, with submissions to be sent to [email protected] with “NBC/CWB” in the subject line.
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