Butterfield Bank to buy 91.7% of CIBC Caribbean in US$1.79 billion transaction

Butterfield Bank has agreed to purchase a 91.7 per cent controlling interest in CIBC Caribbean under an arrangement worth about US$1.79 billion.

The consideration is set to include approximately US$1.09 billion in cash along with around US$703 million in Butterfield stock.

Butterfield, which is based in Hamilton, Bermuda, operates as a full-service banking institution and wealth management company.

Once the acquisition is completed, the merged business is projected to be the biggest independent bank operating across the Caribbean.

The transaction is also expected to improve efficiency and make the group more resilient operationally, while expanding its corporate, personal and wealth management services.

Butterfield said it also plans to acquire the outstanding minority shares in CIBC Caribbean, forming a regional banking and wealth management group with roughly US$29 billion in assets.