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Laurentian Bank of Canada Acquires North American Trust Company in $4.5 Billion Deal

Strategic Insights

— 1 min read

Laurentian Bank of Canada has reached an agreement with North American Life Assurance Company to acquire its subsidiary North American Trust Company for approximately $4.5 billion. The deal, which includes assuming all $2.8 billion in deposit liabilities and $1.7 billion in performing loans, marks a significant expansion of Laurentian Bank's presence in Ontario and Western Canada. The acquisition, subject to final due diligence and regulatory approvals, is expected to be completed by September 30, 1995.

Key Takeaways:

  • Laurentian Bank of Canada has agreed to acquire North American Trust Company for approximately $4.5 billion.
  • The deal includes assuming all $2.8 billion in deposit liabilities and $1.7 billion in performing loans from North American Trust.
  • The acquisition represents a strategic fit with Laurentian Bank's current operations and will expand its presence in Ontario and Western Canada.
  • Brazos Fund LP, a U.S.-based real estate investor, has agreed to purchase the remainder of the assets from North American Trust, including troubled real estate loans.
  • The transaction is subject to final due diligence, regulatory and CDIC approvals, and is expected to close by September 30, 1995.
  • Henri-Paul Rousseau, President and Chief Executive Officer of Laurentian Bank, has stated that the acquisition represents an excellent strategic fit and will allow the bank to significantly expand its presence in the region.
  • The acquisition will result in the assumption of North American Trust's 30-branch banking network.
  • Laurentian Bank of Canada is the country's 7th largest domestic bank, with $10 billion in assets, 230 branches, and 3,200 employees.

Statistics:

  • The acquisition deal is valued at approximately $4.5 billion.
  • Laurentian Bank of Canada is assuming $2.8 billion in deposit liabilities and $1.7 billion in performing loans as part of the deal.
  • The acquisition includes the assumption of North American Trust's 30-branch banking network.
  • Laurentian Bank of Canada has $10 billion in assets, with 230 branches and 3,200 employees.
  • The Canada Deposit Insurance Corporation (CDIC) is prepared to facilitate the transaction, subject to certain conditions.

Sources:

  • Business Wire, June 30, 1995
  • Laurentian Bank of Canada press release, June 30, 1995

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