Laurentian Bank of Canada (LB.TO) on Tuesday said it has agreed to sell its retail and SME banking businesses to National Bank of Canada. The move is part of an expanded execution of its 2024 Strategic Plan, aimed at focusing on commercial real estate lending, inventory and equipment financing, intermediary services and capital markets.
In a parallel transaction, Fairstone Bank of Canada has agreed to acquire all outstanding Laurentian Bank shares for about C$1.9 billion in cash, or C$40.50 per share—a 20% premium to Laurentian's December 1 closing price of C$33.76 on the Toronto Stock Exchange. Laurentian Bank President and CEO Éric Provost will remain in his role following the acquisition.
Fairstone Bank plans to combine its commercial lending operations with Laurentian's commercial platform to expand scale and strengthen national market presence.
Before the Fairstone deal closes, National Bank will acquire Laurentian's retail and SME assets and assume related liabilities. As of July 31, 2025, these portfolios comprised approximately $3.3 billion in retail loans and $7.6 billion in retail deposits, along with about $0.8 billion in SME loans and $0.6 billion in SME deposits. The transactions will be fully settled in cash, with final consideration based on closing balances.
Both transactions are expected to be completed by late 2026.
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