Q: Hi, sorry if this was answered already. Any comments on the Globe and Mail report that National Bank offered to buy Canadian Western Bank in a deal valued at $5-billion?
Thank you, Michael
Thank you, Michael
5i Research Answer:
Wow; a 100% premium on CWB. The deal makes sense. NA is still over concentrated in Quebec, and CWB is concentrated in western Canada. NA says there are $270M in synergies. CDPQ is investing $500M with the deal, and the deal will be accretive to earnings over time even at the big premium. The subscription receipts come at a $4 discount, and should be received well. We would be comfortable buying.