The National Bank has just obtained a second favourable support in three weeks for its project to acquire the Canadian Western Bank.
Quebec’s largest banking institution announced Thursday that it had received authorization from the Competition Bureau to carry out the transaction valued at $5 billion.
Canadian Western Bank shareholders first approved the sale to National Bank three weeks ago.
The proposed transaction must now be authorized by the Office of the Superintendent of Financial Institutions and Canadian Finance Minister Chrystia Freeland.
If the transaction receives all necessary approvals, National Bank can hope to close the operation next year.
This acquisition project represents the largest transaction in the history of the National Bank.
The project was announced on June 11 and is to be carried out through a share exchange. Each share of Canadian Western Bank would be exchanged for 0.45 shares of National Bank.
The acquisition would allow National Bank to accelerate its growth in the country, particularly in Alberta and British Columbia.
Founded 40 years ago, Canadian Western Bank has some 40 branches, mainly located in western Canada and Ontario, and a loan portfolio worth $37 billion.