EQB, the Toronto-headquartered parent company of EQ Bank, has entered into a definitive agreement to acquire PC Financial from Canadian supermarket chain Loblaw Companies.
The acquisition is valued at $800 million and includes President’s Choice Bank, PC Financial Insurance Agency Inc, PC Financial Insurance Brokers Inc, and other affiliated entities.
The deal will be funded through a combination of cash and shares, according to EQB, and is expected to close in 2026 pending regulatory approvals. Once completed, the acquisition will add $5.8 billion in assets and over $800 million in direct retail deposits to EQB’s portfolio.
As part of the agreement, EQB will also pick up the PC Mastercard portfolio, which includes more than two million active accounts, making it one of the largest credit card portfolios in Canada. Additionally, EQ Bank will become the exclusive financial partner for Loblaw’s PC Optimum loyalty programme, with Loblaw retaining ownership of the programme itself.
EQB says it will transition PC Financial into the EQ Bank brand “over time”, with existing branding to be retained during the transition period.
EQB has also outlined plans to introduce “a broader suite of savings and registered accounts” for its nearly 3.5 million customers in Canada through the acquisition, while also expressing its intent “to provide future offerings that address more holistic banking needs”.
PC Financial, which has provided credit cards, insurance, and other financial services since 1998, partnered with Temenos in May last year to implement the vendor’s retail core banking system.
Source: https://www.fintechfutures.com/
