The Montreal-based lender is being split up, with its commercial operations being sold to Fairstone Bank at a 20 per cent premium to its Monday closing price, and its retail business and SME banking portfolio being taken over by National Bank before the deal closes. If completed, the transaction would make it the third of Canada’s publicly traded smaller banks to be taken over in the past three years. (The Logic)

Talking point: Laurentian—which will be keeping its brand and office location—has been searching for a path forward since its 2023 sale process failed to attract a buyer. The deal aligns with the bank’s 2024 strategic shift to accelerate its commercial lending, CEO Éric Provost said in a press release Tuesday. After the deal closes, Laurentian will shutter its 58 retail branches across Quebec, and said its 2,800 employees will not be transferred and can instead apply for open roles at National Bank. The transaction “highlights the challenges in competing within the Canadian lending market with a sub-scale franchise,” Mike Rizvanovic, a Scotiabank analyst, wrote in a note to clients.

Editor’s note: This item has been updated to note that the transaction would mark the third of Canada’s four publicly traded smaller banks to be acquired in the last three years.

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