National Bank of Canada to acquire Laurentian Bank's retail and SME portfolios as Fairstone buys the rest

National Bank of Canada agreed on 2 December 2025 to acquire Laurentian Bank of Canada's retail and small and medium-sized enterprise (SME) banking portfolios, as part of coordinated transactions under which Fairstone Bank of Canada will acquire all of Laurentian Bank's common shares for about C$1.9 billion in cash.

As at 31 July 2025, the retail loans and deposits being transferred totalled approximately C$3.3 billion and C$7.6 billion respectively, while the SME loans and deposits totalled approximately C$0.8 billion and C$0.6 billion. National Bank will also assume a distribution agreement for certain mutual funds totalling about C$3.4 billion, and has separately agreed to buy Laurentian Bank's syndicated loan portfolio of about C$0.9 billion, a transaction expected to close in approximately three months.

“Leveraging our strong presence in Québec, this transaction aligns with our domestic growth strategy and is a natural fit,” said Laurent Ferreira, president and chief executive of National Bank.

TERMS AND FINANCIAL IMPACT

The National Bank transactions will be settled in cash, with the final consideration based on balances at closing; calculated as at 31 July 2025, the price would approximate net book value. National Bank expects the deals to add about 1.5% to 2% to adjusted earnings per share in the first year after the retail and SME transaction closes, and to reduce its Common Equity Tier 1 ratio by about 25 to 30 basis points. None of Laurentian Bank's employees or retail branches will transfer to National Bank, and Laurentian Bank will close its Québec branches at conversion.

FAIRSTONE ACQUISITION

Fairstone Bank will pay C$40.50 a share, a premium of about 20% to Laurentian Bank's closing price of C$33.76 on 1 December 2025. Laurentian Bank will keep its brand and Montreal head office and will concentrate on commercial real estate lending, inventory and equipment financing, intermediary services and capital markets, with Éric Provost remaining president and chief executive. The share acquisition requires the approval of two-thirds of votes cast by Laurentian shareholders and will close immediately after the retail and SME transaction. Subject to regulatory and shareholder approvals, the transactions are expected to close by late 2026.