OTTAWA: Canadian Imperial Bank of Commerce has completed the $5 billion acquisition of Chicago-based PrivateBancorp PVTB.O, which will help it diversify from its domestic market, it said on Friday.
CIBC, Canada's fifth-biggest lender, has the biggest exposure to the country's housing markets. Concerns are mounting about falling home prices in Toronto and Vancouver, and the bank has long coveted a major U.S. acquisition.
CIBC Chief Executive Officer Victor Dodig said he had talked about a deal with PrivateBank CEO Larry Richman for almost three years.
"PrivateBank has always been part of our medium- to long-term strategy," Dodig said in an interview.
The combined U.S. business will be renamed CIBC beginning in the fourth quarter, and Richman will run it as group head for the U.S. region.
Dodig said the bank would focus on integrating the two businesses for the next two years but left an option open to make acquisitions in wealth management.
"There's so much opportunity to grow it organically," he said. CIBC is paying $2.4 billion in cash and the remainder in shares. It expects the acquisition will add to its earnings within three years.
This picture released on August 13, 2023, shows WAPDA House in Lahore. — Facebook/WAPDALAHORE: Water and Power...
This image released on April 18, 2024, shows the meeting on Kisan Card at the Sindh Secretariat. — Facebook/Jam...
Pakistan State Oil HQs can be seen in this picture. — PSO websiteKARACHI: Pakistan State Oil and Pakistan Railways ...
This representational image shows gold bars. — UnsplashKARACHI: Gold prices increased by Rs500 per tola on Friday in...
Representational image of a working oil pumpjack. — AFP/FileLONDON: Plentiful supplies of some of the biggest crude...
Prime Minister personally promises to ensure that our bureaucracy does not play tricks with them