National Bank of Canada agrees to buy Canadian Western Bank

Shares of Canadian Western Bank (CWB.TO) are soaring after the National Bank of Canada agreed to buy it for about $5 billion CAD.

Yahoo Finance's Julie Hyman and Josh Lipton break down the news and how it may affect the banking market in Canada.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl

Video Transcript

Chairs of Canadian Western Bank.

Sure, sure skyrocketing is coming after the news that the National Bank of Canada agreed to buy this bank for about 5 billion Canadian dollars.

One interesting I I reached out to the team at Raymond James, and they cover this one.

Sort of interesting note I saw was So National Bank says this deal should close by the end of 2025 and and Raymond James is sort of interesting.

They they said they they cover the names, of course.

And they said it kind of makes sense to them Strategically, It's a logical fit, I thought one thing they said was interesting.

The timing So so that would be kind of during what they say is gonna be kind of this federal election year.

And the analysts saying there could be sort of Western based, uh, institutions and politicians in Canada in the middle of the election.

That may not be, you know, so crazy positive on their domestic bank being acquired.

So maybe some kind of possible political cross currents on this one.

Interesting.

I mean, if you look at the Canadian market, obviously we are not super familiar with the Canadian banking market.

Um, but there there are really five big banks in, uh, Canada and and, um, National Bank is one of them.

It's, uh it's ba uh I should say there are five in Toronto and then this one based in Montreal.

And so now they're making a regional purchase here.

Um, the folks over at Bloomberg Intelligence did say the deal is expensive, but it is consistent with another, uh, Canada banking deal that's happened this year.

Neither of us are that familiar with the sector.

But maybe that's a trip to Montreal.

OK, at a price reporting, OK.