EQB Inc. have entered into a definitive agreement to acquire President's Choice Bank from Loblaw Companies Limited (TSX:L) for estimated CAD 800 million.
EQB Inc. (TSX:EQB) have entered into a definitive agreement to acquire President's Choice Bank from Loblaw Companies Limited (TSX:L) for estimated CAD 800 million on December 3, 2025. The consideration will be satisfied by the issuance to one or more subsidiaries of Loblaw of 7.2 million common shares of EQB, representing approximately 16% of EQB?s issued and outstanding common shares as at the date hereof on a pro-forma basis, and the remainder in cash. In addition, prior to the closing of the transaction and subject to regulatory approval, Loblaw will release and receive approximately CAD 500 million of excess capital and other value from PC Bank, for estimated total value of CAD 1.3 billion to Loblaw. EQB intends to finance the cash consideration with its current balance sheet resources. In case of termination of transaction, EQB Inc. will pay a termination fee of CAD 40 million.
President's Choice Bank reported CAD 5.8 billion in total assets and CAD 1.1 billion in revenue as of September 2025 on a trailing 12-month basis.
The transaction is subject to certain conditions set forth in the Transaction Agreement, including, among others, receipt of approval from the Minister of Finance, clearance under the Competition Act (Canada) and execution and delivery of the Program Participation Agreement and an investor rights agreement. The expected completion of the transaction is in calendar year 2026.
RBC Capital Markets Inc. acted as financial advisor for EQB Inc. Cheryl Satin of Blake, Cassels & Graydon LLP acted as legal advisor for EQB Inc. CIBC World Markets, Inc. acted as financial advisor for Loblaw Companies Limited. Adrienne DiPaolo of Torys LLP acted as legal advisor for Loblaw Companies Limited.
Loblaw Companies Limited is a Canada-based food and pharmacy retailer. The Company provides grocery, pharmacy and healthcare services, health and beauty products, apparel, general merchandise, financial services, and wireless mobile products and services. The Company’s segments include Retail and Financial Services. The Retail segment consists primarily of corporates and franchise-owned retail food and Associate-owned drug stores, which includes in-store pharmacies, health care services and other health and beauty products, apparel and other general merchandise. The Financial Services segment provides credit card and everyday banking services, the PC Optimum Program, insurance brokerage services, and telecommunication services. Its brands include Joe Fresh, no name, President's Choice and others.
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EQB Inc. have entered into a definitive agreement to acquire President's Choice Bank from Loblaw Companies Limited (TSX: L) for estimated CAD 800 million.
