(Toronto) Shares of Canadian Western Bank (CWB) jumped 70% in early trading Wednesday after the bank announced it had entered into an all-stock transaction to be acquired by the National Bank of Canada, in a deal that valued it at around $5 billion.
CWB shares rose $17.61 to $42.50 on the Toronto Stock Exchange Wednesday morning. National Bank shares fell $6.31 to $110.03.
The deal announced after markets closed Tuesday will allow Quebec-focused National Bank to expand its geographic reach into Alberta and British Columbia, where CWB focuses its operations.
The CWB should retain its branches, management and operations based in Edmonton.
The deal comes just months after Royal Bank completed its $13.5 billion purchase of HSBC Canada, in the country’s largest-ever domestic banking transaction.
The transaction is subject to shareholder and regulatory approval and is expected to be completed by the end of 2025.
