A two-part transaction reshapes Canada’s banking landscape as B2B Bank moves to Fairstone
Laurentian Bank of Canada has completed its two-part sale, ending 180 years as an independent publicly listed institution and placing control in the hands of two lenders with distinct strategic goals.
The transactions, first announced in December 2025, closed November 1.
Fairstone Bank of Canada acquired all of Laurentian’s common shares at $40.50 per share, a total of approximately $1.9 billion.
National Bank of Canada (NBC) simultaneously assumed roughly $8 billion in liabilities and acquired approximately $3.7 billion in assets from Laurentian’s retail and small and medium enterprise (SME) banking portfolios, according to the joint completion announcement.
Laurentian’s common shares are expected to be delisted from the Toronto Stock Exchange (TSX) at market close on November 3.
What changes for the broker channel
B2B Bank, Laurentian’s broker-facing subsidiary serving approximately 27,000 financial advisers and mortgage brokers across Canada, now operates as a wholly owned subsidiary of Fairstone.
The transition extends Fairstone’s reach into broker-distributed lending, building on its standing as Canada’s largest alternative lender following the merger of Fairstone Bank and Home Trust Company completed in January 2025.
Carl De Souza, senior vice president and sector lead for North American financial institution ratings at Morningstar DBRS in Toronto, told Canadian Mortgage Professional in December 2025 that Canada’s appetite for large-scale banking consolidation was nearly spent.
“There’s not much further merger and acquisition space in 2026 in the Canadian sense. I don’t know where it would come from. I think to most, the PC Financial acquisition was somewhat unexpected. So there could always be something like that. The Big Six might do some tuck-in acquisitions, but I wouldn’t say anything of a material nature,” De Souza said.
Laurentian refocused as a commercial lender
Founded in 1846, Laurentian operated personal and commercial banking and capital markets businesses in Canada and the United States.
The restructured Laurentian will operate as a Fairstone subsidiary, concentrating on commercial real estate, inventory, and equipment financing with a particular emphasis on Québec.
“This important milestone marks the beginning of a new chapter for our organization and reinforces our position as a specialized commercial bank, allowing us to build on our strengths and focus on the areas where we can create the greatest value,” said Éric Provost, president and chief executive officer of Laurentian Bank of Canada.
Fairstone, a privately held lender with roots dating back to the 1920s, focuses on residential and commercial mortgages, consumer deposits, auto and retail financing and personal loans across more than 250 branches and digital channels. It is the parent company of mortgage market giant Home Trust.
Scott Wood, president and CEO of Fairstone Bank, said the rationale centred on diversification and scale.
“The acquisition of Laurentian Bank represents a significant step forward in the continued evolution of Fairstone Bank, enhancing the breadth and resilience of our business. Bringing together complementary businesses will diversify and scale our asset base and funding sources, support sustainable, profitable growth, and unlock opportunities to operate more effectively as we integrate our organizations,” Wood said.
For NBC, the transaction deepens its retail footprint in Québec.
“We are pleased to welcome new retail and SME clients shortly and provide them with access to National Bank’s full range of digital services, an expanded suite of financial products, our branch network and our business banking teams,” said Laurent Ferreira, president and CEO of National Bank.
National Bank was founded in 1859. It offers retail, commercial, wealth and capital markets services and reported $553 billion in assets as of July 31, 2025.
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