Canada's CIBC completes $5 billion PrivateBancorp buy
Reuters
Published Jun 23, 2017 09:38AM ET
Canada's CIBC completes $5 billion PrivateBancorp buy
TORONTO (Reuters) - Canadian Imperial Bank of Commerce (TO:CM) has completed the $5 billion acquisition of Chicago-based PrivateBancorp (O:PVTB), which will help it diversify from its domestic market, it said on Friday.
CIBC , Canada's fifth-biggest lender, has the biggest exposure to the country's housing markets. Concerns are mounting about falling home prices in Toronto and Vancouver, and the bank has long coveted a major U.S. acquisition.
CIBC Chief Executive Officer Victor Dodig said he had talked about a deal with PrivateBank CEO Larry Richman for almost three years.
"PrivateBank has always been part of our medium- to long-term strategy," Dodig said in an interview.
The combined U.S. business will be renamed CIBC beginning in the fourth quarter, and Richman will run it as group head for the U.S. region.
Dodig said the bank would focus on integrating the two businesses for the next two years but left an option open to make acquisitions in wealth management.
"There's so much opportunity to grow it organically," he said.
CIBC is paying $2.4 billion in cash and the remainder in shares. It expects the acquisition will add to its earnings within three years.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.