Laurentian Bank to divest operations to Fairstone Bank and National Bank of Canada

Laurentian Bank's Strategic Sale: Laurentian Bank of Canada has agreed to sell its commercial operations to Fairstone Bank and its retail and SME banking portfolio to National Bank of Canada, following a strategic review that did not result in a buyer for the entire bank.

Transaction Details: Fairstone will pay C$40.50 per share, valuing the deal at C$1.9 billion, while National Bank will acquire retail/SME assets based on outstanding balances at closing, with both transactions subject to regulatory approvals.

Impact on Operations: The Laurentian brand will be retained under Fairstone, with its commercial segment remaining in Montreal, while Laurentian will close its branches in Québec and manage staff changes before transferring its retail and SME business.

Future Prospects: Both Fairstone and National Bank aim to enhance their market positions and service offerings through these acquisitions, with National Bank emphasizing the benefits of its extensive branch network and digital services for Laurentian's clients.