07:34 AM EST, 12/02/2025 (MT Newswires) -- Laurentian Bank (LB.TO) Tuesday announced its acquisition by Fairstone Bank, an alternative lender, for $1.9 billion in cash and concurrently announced the sale of its retail/SME and syndicated loan portfolios to National Bank (NA.TO). Laurentian said these transactions are part of its acceleration to commercial banking.

Fairstone will pay $40.50, in cash, a 20% premium over the closing price of its shares of $33.76 on the Toronto Stock Exchange on Dec. 1, a statement said.

Laurentian's retail loans and deposits totalled $3.3 billion and $7.6 billion as at July 31, respectively, while the SME loans and deposits totalled $0.8 billion and $0.6 billion, respectively. National Bank will also assume the distribution agreement for certain mutual funds, worth $3.4 billion.

The Bank will retain its brand identity and head office in Montreal and will continue to be led by Eric Provost who will spearhead the plan to focus on commercial banking. Laurentian's branches and employees will not be transferred to National Bank. Impacted Laurentian Bank employees will be able to apply for open roles at National Bank through a dedicated channel, a statement said.

La Caisse, which holds 8% of Laurentian Bank shares, has agreed to support the acquisition, subject to certain conditions, including moving Fairstone Bank's head office to Montreal.

Laurentian's acquisition by Fairstone is subject to the closing of the Retail/SME transaction. All transactions are expected to close late next year.