Factbox: Canada’s healthy banks are on the takeover trail

TORONTO (BestGrowthStock) – Toronto Dominion Bank is to buy Chrysler Financial from private equity firm Cerberus Capital Management for $6.3 billion, in the latest of a series of foreign asset purchases by Canadian banks snapping up rivals weakened by the global economic crisis.

The new deal will make Canada’s No. 2 bank one of North America’s top five bank-owned auto lenders.

Here are some other recent deals by Canada’s biggest lenders, who emerged from the financial crisis in far better shape than most rivals.


TD has some 1,300 branches in the United States, compared with 1,100 in Canada, and it has been actively targeting U.S. retail expansion.

* Earlier this year, TD said it would buy troubled U.S. lender South Financial Group Inc for about $192 million as it expands its footprint in the Southeast.

* It has also announced the acquisition of assets and liabilities of three troubled Florida banks worth $3.8 billion from the Federal Deposit Insurance Corp (FDIC).


Canada’s No. 4 bank has more than 300 branches in its U.S. branch network, which it runs through its Chicago-based Harris Bank unit.

* Bank of Montreal last week said it agreed to buy Wisconsin’s Marshall & Ilsley Corp bank for about $4.1 billion in an all-stock deal.

* In April BMO’s Harris unit announced plans to acquire assets and liabilities of U.S. lender Amcore from the Federal Deposit Insurance Corp in a deal to boost its reach in Illinois and Wisconsin.

* Last month the bank said it was seeking acquisitions to complement its wealth management business in China.


Canada’s third-largest lender, Bank of Nova Scotia, has expanded its footprint in Latin America, where it is active in Peru, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Mexico, Panama, Puerto Rico and Venezuela. It also has a growing presence in East Asia.

* Most recently the bank pushed into Uruguay with the acquisition of private bank Nuevo Banco Comercial and consumer-finance company Pronto.

* In November it agreed to buy the 82 percent of DundeeWealth it does not already own for C$2.3 billion ($2.25 billion), giving a significant boost to its domestic wealth management presence.

* In September it acquired Royal Bank of Scotland Chilean wholesale banking operations.

* And in March Thanachart Bank, 49 percent owned by Scotia, agreed to pay $1 billion for a 47.6 percent stake in Siam City Bank in Thailand’s biggest acquisition in four years.


Canada’s largest bank, Royal Bank of Canada, has also signaled it is on the lookout for acquisitions.

* On October 18 it said it agreed to buy British fund manager BlueBay Asset Management for 963 million pounds ($1.5 billion) in a push to cement its position as a leading global wealth manager.


The Canadian Imperial Bank of Commerce, the No. 5 bank, has been active in building its portfolio of credit card businesses, but has indicated limited interest in opportunities for acquisitions outside of Canada.

* In June CIBC agreed to buy Citigroup’s C$2.1 billion ($2 billion) Canadian MasterCard business, becoming a dual credit card issuer.


National Bank of Canada, the country’s sixth-largest bank, has said it wants to bulk up its retail presence across Canada, and could bid on struggling smaller lenders to add to its branch network.

($1=$1.01 Canadian)

(Reporting by Pav Jordan and Ka Yan Ng)

Factbox: Canada’s healthy banks are on the takeover trail