-- EQB (EQB.TO) has received Federal approval to proceed with its acquisition of PC Financial from Loblaw Companies (L.TO), the company said on Tuesday.
The approval follows a recommendation from the Office of the Superintendent of Financial Institutions (OSFI), and Competition Bureau clearance in March.
EQB announced last December that it was acquiring PC Financial in a deal valued at $800 million, in cash and shares. Loblaw would take a minimum 17% equity stake in the company, and EQB would become the exclusive financial partner of the PC Optimum loyalty program.
The acquisition will see EQB expand its total customer base to 3.3 million Canadians and add $5.8 billion in assets and $800 million in direct retail deposits. EQB said it will be able to offer everyday banking, lending, payments, and rewards through a single integrated ecosystem to the more than 18 million active PC Optimum loyalty members.
The acquisition is expected to close in the summer.
EQB shares were last seen up $0.98, to $122.24, on the Toronto Stock Exchange. Loblaw shares are up $0.58, to 62.56.
Price: $122.37, Change: $+1.11, Percent Change: +0.92%