BMO Financial Group and its indirect wholly-owned Chicago subsidiary BMO Harris Bank N.A. have signed an agreement with BNP Paribas to acquire Bank of the West and its subsidiaries, with assets of about C$135 billion (US$105 billion). The deal gives BMO a strong position in three of the top five U.S. markets.
Under the terms of the agreement, BMO will acquire Bank of the West for a cash purchase price of US$16.3 billion. BMO will fund the transaction primarily with excess capital reflecting its strong capital position and anticipated capital generation.
Purchase accelerates BMO’s growth plans
“Founded in 1874, Bank of the West has a strong track record of serving retail, small business, commercial and wealth clients. With the combination of two highly complementary geographies and building upon BMO's digital, data and analytics capabilities, this acquisition enables contiguous market extension, the acceleration of BMO's commercial banking expansion, and highly competitive scaled entry into California,” said BMO.
On closing, the acquisition will bring nearly 1.8 million customers to BMO and extend its banking presence through 514 additional branches and commercial and wealth offices in key U.S. growth markets.
The agreement gives the bank a footprint in 32 states, expanded national specialty commercial businesses and a digital banking platform gathering deposits in all 50 states.
Purchase will add meaningful scale
"With the strength of our performance and our integrated North American foundation, we have never been better positioned to take this next step in our growth strategy and to deliver for the new customers and colleagues we look forward to welcoming to BMO. This acquisition will add meaningful scale, expansion in attractive markets, and capabilities that will enable us to drive greater growth, returns and efficiencies," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We will deliver a highly competitive offering to new growth markets, combining the strength of our digital banking platform and a strong team of bankers to generate leading customer growth."
