BMO to Acquire BNP's Bank of the West in a Deal We Think Is Mildly Accretive for Shareholders

BMO Financial has announced that it will acquire BNP Paribas' Bank of the West in a deal valued at $16.3 billion (CAD 20.95 billion), expected to close by the end of 2022. Bank of the West is primary located in California, with roughly three fourths of its deposits in the state and the majority of these concentrated in the San Francisco and Los Angeles metro areas. The deal is expected to be at 1.5 times tangible book value at close and 10.7 times 2022 synergized earnings, with BMO expecting it can cut 35% of Bank of the West's expense base by the end of 2023.