French lender BNP Paribas has secured all the necessary regulatory approvals to close its previously announced sale of Bank of the West to Bank of Montreal.
In December 2021, BNP Paribas signed an agreement with BMO Financial Group for the sale of its retail & commercial banking activities in the US conducted through its subsidiary Bank of the West.
Under the terms of the deal, BMO will acquire Bank of the West for a cash purchase price of $16.3bn.
Established in 1874, Bank of the West caters to retail, small business, commercial, and wealth clients. The bank operates over 500 branches and offices in 24 states, primarily in the Western and Midwestern parts of the US, employs more than 9,000 team members, and caters to nearly 1.8 million customers.
The acquisition will bring about 1.8 million customers to BMO and will further expand its banking presence through 514 additional branches and commercial and wealth offices in key US growth markets.
BNP Paribas stated that no further regulatory approvals are required to complete the transaction.
The deal is anticipated to close on 1 February 2023, subject to the satisfaction of the remaining customary closing conditions stated in the agreement.
BNP Paribas Group Director and CEO Jean-Laurent Bonnafé said: “I would like to warmly thank Bank of the West and BNP Paribas teams who have been working closely with BMO Financial Group these last months in order to prepare the closing of the transaction and the transition to BMO Financial Group.
“BNP Paribas continues to benefit from a long-term presence in the United States and notably a strong Corporate & Institutional Banking franchise which has been recently reinforced.
“BNP Paribas’ set-up in the United States remains a strategic pillar for its development. Therefore, the Group will continue to consolidate and further develop its Corporate & Institutional Banking franchise to better serve multinational clients’ needs.”
