The Bank of N.T. Butterfield & Son Ltd. (NTB), on Thursday announced an agreement to acquire Canadian Imperial Bank of Commerce's (CM, CM.TO) 91.7% stake in CIBC Caribbean Bank Ltd. in a transaction valued at about $1.8 billion.
The company said the transaction is expected to close in the first half of 2027.
The consideration comprises $1.091 billion in cash and $703 million in Butterfield shares, representing an aggregate purchase price of $1.794 billion, or $1.14 per CIBC Caribbean share.
The company said the deal is expected to generate about 12% accretion to earnings per share and about 15% accretion to cash earnings per share in the first year, excluding integration-related costs.
Under the agreement, the company will commence a mandatory takeover bid for the remaining 8.3% stake held by minority shareholders with the aim of acquiring full ownership of CIBC Caribbean.
The company added that the acquisition is expected to enhance its banking and wealth management capabilities across international financial centers and Caribbean markets.
Following completion of the transaction, CIBC will own about a 22% stake in the combined entity.
CIBC Caribbean is a relationship bank serving communities across the Caribbean with approximately $29 billion in assets.
In the pre-market trading, Butterfield & Son is 0.48% higher at $56.58 on the New York Stock Exchange.
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