Deal estimated at $800m, marks big step in credit-card market
EQB announced a deal to purchase President’s Choice (PC) Bank from Loblaw Companies on Tuesday, an agreement the company says will boost its customer base by millions and mark a significant step into Canada’s credit-card market.
The move, valued at $800 million, will see EQB purchase the PC Mastercard portfolio, which has over two million active accounts.
In total, the bank – the parent company of Equitable Bank, a significant player in Canada’s mortgage broker channel – says its customer base will grow by almost 3.5 million with the deal, with assets swelling by $5.8 billion.
EQB will become the exclusive financial partner of the PC Optimum loyalty program, according to its statement, as part of a long-term strategic relationship with Loblaw.
Chadwick Westlake, EQB’s president and chief executive officer, described the deal as the beginning of a “new era” for Canadian banking, offering “a unique opportunity for Canada’s Challenger Bank to redefine what Canadians should expect from their banks.”
For EQB, the deal was an appealing one because of the value creation and revenue opportunities it presented, the company said, with annual run-rate pre-tax cost synergies expected to total about $30 million before tax.
EQB’s digital platform EQ Bank will likely absorb PC Financial over time, although both brands will remain separate for now.
Loblaw retains a termination right if the EQB board of directors announces a change of control transaction during the interim period, with EQB required to pay a termination fee equalling $40 million to the company in that case.
EQB will also become Loblaw’s exclusive financial services loyalty partner and gain access to the company’s national retail channels to market its financial services products – initially focusing on credit cards and deposit announcements.
The news arrived as EQB announced its fourth-quarter and full-year results for 2025, including a $92 million pre-tax charge linked to a one-time restructuring program that Westlake said weighed on its performance.
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