After months of negotiations and deliberations, Canadian Western Bank shareholders have officially approved the takeover by National Bank. The decision was made at a special meeting held on Tuesday, with an overwhelming majority of shareholders voting in favor of the acquisition.
The proposed takeover, which was first announced in October 2020, will see National Bank acquire all outstanding shares of Canadian Western Bank for a total of $2.3 billion. This will result in National Bank becoming the sixth largest bank in Canada, with a significant presence in Western Canada.
According to Canadian Western Bank CEO Chris Fowler, the decision to approve the takeover was made after careful consideration of the potential benefits for shareholders, employees, and customers. He stated, “We believe this transaction will create a stronger, more diversified bank that is well-positioned to serve the needs of our clients and communities.”
The acquisition is expected to bring about several advantages for both banks. National Bank will gain access to Canadian Western Bank’s strong presence in the Western Canadian market, while Canadian Western Bank will benefit from National Bank’s extensive product offerings and digital capabilities.
In addition, the acquisition is expected to result in cost savings of approximately $120 million per year, which will be achieved through the consolidation of back-office operations and other efficiencies.
The approval of the takeover by Canadian Western Bank shareholders marks a significant milestone in the process. However, the acquisition is still subject to regulatory approvals and is expected to be completed in the first quarter of 2022.
In the meantime, both banks will continue to operate independently, with no changes to their products, services, or operations. Customers can expect a smooth transition once the acquisition is finalized.
This takeover is a significant development in the Canadian banking industry and is expected to have a positive impact on both banks and their stakeholders. As the process moves forward, both National Bank and Canadian Western Bank remain committed to providing exceptional service to their customers and delivering value to their shareholders.
