EQB to Buy Loblaw Unit PC Financial for About $573.5 Million — Update

By Stephen Nakrosis

EQB Inc. entered into an agreement to acquire President's Choice Bank, PC Financial Insurance Brokers and other affiliated entities from Loblaw.

The company said it would buy PC Financial for 1.15 times book value at closing, excluding certain excess capital, for consideration of about 800 million Canadian dollars (US$573.5 million), subject to adjustment.

EQB said it will issue 7.2 million common shares to one or more subsidiaries of Loblaw, and make up any remainder in cash. EQB said it plans to finance the cash consideration with current balance-sheet resources.

The company said PC Financial's products and services, such as the PC Mastercard portfolio, would be part of the deal. The acquisition is expected to expand EQB's total customer base to nearly 3.5 million and add C$5.8 billion in assets, the company said.

In connection with the deal, EQB will enter into a long-term strategic relationship with Loblaw and become the exclusive financial partner for the PC Optimum loyalty program. Loblaw will receive board-nomination rights, registration rights and pre-emptive rights.

The deal is expected to close next year.

EQB also reported fourth-quarter adjusted earnings per share of C$1.53, down 39% from the year-ago period. The parent of Equitable bank also said its book value per share in the fourth quarter was C$81.31.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

December 03, 2025 18:21 ET (23:21 GMT)