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Fairstone Bank has agreed to acquire Laurentian Bank in an all-cash deal valued at about CUSD 1.9 billion, offering a 20% premium over Laurentian's previous closing share price. The transaction, expected to close by late 2026, will strengthen Fairstone's commercial real estate presence, especially in Quebec. Laurentian, which had completed a strategic review in 2023 and later undertook restructuring, sees the acquisition as supporting its shift toward commercial specialisations. Fairstone will buy all outstanding shares at CUSD 40.50 each. In a related move, National Bank of Canada will acquire Laurentian's retail and SME portfolios, which together hold loans and deposits worth over CUSD 12 billion.
Fairstone Bank announced earlier this week that it would acquire its peer Laurentian Bank in an all-cash transaction worth about CUSD1.9 billion, marking a significant shift for the Canadian lender which had previously been exploring opportunities to sell businesses or divest assets. The deal reflects a premium of 20% over Laurentian's share price at the previous close, as confirmed by both institutions. Advertisement
The acquisition is anticipated to conclude by late 2026 and is expected to enhance Fairstone's position in the commercial real estate sector across Canada, with an increased emphasis on Quebec. Scott Wood, who serves as President and CEO of Fairstone Bank, remarked that Quebec remained a priority market and noted that the expertise brought in from Laurentian Bank would support the company's long-term expansion.
Laurentian had initiated a strategic review in mid-2023 but concluded the process later that year after failing to secure a suitable buyer. In the period since, the bank has been undertaking restructuring measures, including staff reductions and the closure of its equity research division, in an attempt to restore investor confidence.
Its CEO, Eric Provost, stated that the acquisition aligned with the bank's shift towards accelerating commercial specialisations as outlined in its 2024 Strategic Plan. Under the terms of the deal, Fairstone will purchase all outstanding Laurentian shares at CUSD40.50 in cash. Laurentian's stock had closed at CUSD33.76 earlier this week on the Toronto Stock Exchange and had recorded a rise of roughly 16.6% since the beginning of 2025.
In a separate development, National Bank of Canada will assume ownership of Laurentian's retail and SME banking portfolios. Michael Ashley Schulman, Chief Investment Officer at Running Point Capital Advisors, observed that incorporating these retail and small-business accounts would complement National Bank's strong presence in Quebec by adding more deposit relationships.
As of the end of July 2025, Laurentian's retail loan book was approximately CUSD3.3 billion with deposits of CUSD7.6 billion, while its SME portfolio comprised around CUSD0.8 billion in loans and CUSD0.6 billion in deposits, according to statements issued by the banks.
Source - Reuters
5th Jun, 2025
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