Canadian Imperial Bank of Commerce or CIBC (CM,CM.TO) agreed Friday to acquire a 41 percent stake in U.S. asset management company American Century Investments for $848 million in cash. The minority interest is being acquired from JP Morgan Chase & Co. (JPM) following a shareholder agreement. The deal, which is subject to regulatory approval, is expected to close within ninety days.
"This investment will build on our strong franchise in Canada and provide CIBC an additional platform for growth in asset management internationally. It is aligned with our risk appetite and provides attractive fee-based income, geographic diversification and revenue synergies within our asset management business," CIBC President and CEO Gerry McCaughey said in a statement.
Toronto, Canadian-based CIBC noted that the all-cash deal will be immediately accretive to its earnings, with CIBC's share of American Century earnings expected to contribute about $0.15 per share to its fiscal 2012 earnings.
Following the closure of the deal, CIBC will hold 10.1 percent of American Century Investments' voting rights and have two representatives on its ten member board.
Privately-controlled Kansas City-based American Century Investments, with $112 billion of assets under management, has a track record of solid earnings and strong investment performance. It serves a broad mix of institutional, intermediary and retail investor clients in the U.S.
CIBC said its asset management business has strong momentum and is gaining market share. The investment in American Century Investments will boost its existing capabilities by establishing an important presence for CIBC in the world's largest asset management market.
The deal will give CIBC access to American Century Investments' equity and fixed income capabilities, which will expand its product portfolio available to its institutional and retail customers. It will also provide CIBC a platform to further grow its wealth management business in the U.S. and other international markets.
"Demographic trends in the U.S. are positive and savings rates are on the rise. As boomers continue to advance towards retirement age, the increased demand for personal retirement solutions make this opportunity attractive,'' McCaughey added.
American Century Investments President and CEO Jonathan Thomas stated, "We're excited to welcome CIBC as a strategic partner and stakeholder in our company. CIBC's large footprint in Canada and presence in other parts of the world will help in the execution of our growth through diversification strategy, of which a key component is bringing our investment management expertise to non-U.S. Clients."
CM closed Friday's regular trading session at $78.29, up $0.54 or 0.70 percent on a volume of 0.20 million shares, while CM.TO closed on the TSX at C$74.13, down C$0.49 or 0.66 percent on a volume of 1.13 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.