(September 22 – 16:55 ET) – Laurentian Bank says its has signed an agreement to purchase 43 branches of Scotiabank. The agreement follows a letter of understanding signed by both parties on July 26. The transaction is expected to be completed November 1, pending regulatory approvals.
The president and CEO of Laurentian Bank, Henri-Paul Rousseau, said the transaction is a strategic one because it allows the bank to become a Quebec leader in services to retail customers.
“With this acquisition, Laurentian Bank of Canada strengthens its retail banking position throughout the Province of Quebec, Rousseau said. “Increasing the number of branches enables us to augment our client base, to benefit from their competent personnel and to become a leader in the Quebec market. Clients of our Commercial, Point of Sale retailers and B2B Trust will also have access to this more extensive network. Moreover, this transaction will spread our fixed costs over a broader business base, which will lower our average costs and increase our overall efficiency.”
While awaiting regulatory approvals, Scotiabank and Laurentian Bank say they will work together to ensure a smooth transition for customers and employees. Laurentian says the majority of employees currently working in the acquired branches will be offered employment with Laurentian Bank.
-IE Staff