Government launches consultations on National Bank’s proposed acquisition of Canadian Western Bank
November 5, 2024
OTTAWA, ON – The Government of Canada has launched consultations on National Bank of Canada’s (National Bank) proposed acquisition of Canadian Western Bank (CWB).
The proposed transaction would create the third-largest bank in Canada by assets and would result in the combination of two of the country’s largest regional banks.
The Department of Finance is seeking feedback from the public, industry stakeholders, and other interested parties on the potential competition, consumer protection, and financial stability implications of the proposed acquisition.
“The Government of Canada is committed to ensuring that the financial system is competitive, innovative, and serves the best interests of Canadians,” said Finance Minister Chrystia Freeland. “These consultations will help us assess the potential impacts of this proposed transaction and inform our decision on whether to approve it.”
The consultations will be conducted through an online questionnaire and a series of stakeholder roundtables. The deadline for submissions is December 19, 2024.
About the proposed acquisition
National Bank announced its intention to acquire CWB in September 2024. The transaction is valued at approximately $13 billion.
If approved, the acquisition would create a bank with over $500 billion in assets and over 10 million customers. The combined entity would have a strong presence in all regions of Canada, with a particularly strong footprint in Western Canada.
Potential implications
The proposed acquisition could have a number of implications for the Canadian financial system, including:
- Competition: The acquisition would reduce the number of large banks in Canada from six to five. This could lead to less competition in the banking sector, which could result in higher prices and reduced innovation.
- Consumer protection: The combined entity would have a significant market share in some regions of Canada. This could give it the power to raise prices or reduce services without fear of losing customers.
- Financial stability: The acquisition would create a larger and more complex financial institution. This could increase the risk of financial instability in the event of a crisis.
The Government of Canada will consider all of these potential implications when making its decision on whether to approve the proposed acquisition.
Next steps
The Department of Finance will review the submissions received during the consultation period. The Minister of Finance will then make a decision on whether to approve the proposed acquisition. The Minister’s decision is expected to be announced in early 2025.
Government launches consultations on National Bank’s proposed acquisition of Canadian Western Bank
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