(December 13 – 16:40 ET) – Bank of Montreal says it has arranged for the purchase of 17 of its Quebec branches by National Bank of Canada, subject to regulatory approval.

BMO says it will realize an aggregate pre-tax gain of approximately $15 million, subject to closing adjustments.

Given the phased transfer of ownership over the next several months, the gain will be reported in the first and second quarter fiscal results.

The transaction involves 17 bank branches and 89 employees in Quebec. The branches have approximately $685 million in funds under administration.

National Bank will be offering employment to employees of the purchased branches. The transaction excludes certain products and services such as mutual funds and MasterCard credit card accounts as well as assets with other Bank of Montreal companies including BMO mbanx Direct, BMO InvestorLine and BMO Nesbitt Burns.

“We are pleased that this transaction provides for both continued branch banking services and employment in these communities,” said Gilles Jarry, senior vice president, Quebec division, Bank of Montreal. “We will be able to better focus our resources and grow our business in Quebec through continued investments in our delivery channels, human resources, and products and services,” added Jarry.

“This acquisition will enable the National Bank to consolidate its position in various regions of Quebec, in markets where it was underrepresented or absent altogher,” said Jean Houde, senior vice president, personal banking, National Bank.

Earlier this year, Laurentian Bank of Canada picked up 43 branches in Quebec from the Bank of Nova Scotia.
-IE Staff