The U.S. Federal Reserve has approved Bank of Montreal’s (BMO) $16.3 billion U.S. acquisition of San Francisco-based Bank of the West, a deal that will create the 15th largest lender in America.
Bank of Montreal said it now expects the purchase of Bank of the West to close on February 1 this year.
The deal is the biggest ever by a Canadian bank and will expand Bank of Montreal across the western U.S. and into California, giving it a presence in 32 American states.
Bank of Montreal estimates that it will get 1.8 million new customers and $105 billion U.S. in assets from purchasing Bank of the West.
Rival Toronto-Dominion Bank (TD) is still awaiting regulator approval of its $13.4 billion U.S. acquisition of American lender First Horizon Corp (FHN).
Bank of Montreal’s stock has declined 11% in the last 12 months to trade at $132 per share. Bank of the West is privately held.
