Laurentian Bank will be split and sold, with Fairstone taking commercial operations and National Bank acquiring retail assets in a major $1.9B restructuring.
Laurentian Bank’s Breakup Marks Major Shift in Canadian Banking
A Divided Deal Reshapes a 175-Year-Old Institution
Laurentian Bank of Canada is undergoing its most significant transformation in decades, announcing a $1.9-billion agreement that will see the bank split between two buyers. The commercial division will be acquired by Fairstone Bank of Canada, while National Bank will take over Laurentian’s retail and small-business operations at roughly book value. The announcement comes after years of strategic uncertainty and unsuccessful turnaround efforts for the 175-year-old financial institution.
Why the Sale Happened After Years of Struggle
The deal caps a prolonged period in which Laurentian attempted to modernize its operations, improve digital services, and find a buyer that met shareholder expectations. Despite its long history, the bank faced persistent technology gaps—its first mobile app launched only a few years ago—and mounting competitive pressure. Executives said the split offers a path forward that preserves the commercial strengths of the brand while providing retail clients with more robust technology through National Bank’s systems.
What Happens to Branches, Jobs, and the Laurentian Brand
One of the most immediate impacts will be felt in Quebec, where Laurentian’s 57 branches will not transfer to National Bank. Instead, the locations and their employees will wind down, with staff offered the option to apply for roles at National. This affects much of Laurentian’s roughly 2,715-person workforce, though it remains unclear how many positions will be retained under Fairstone’s commercial division. The Laurentian brand will continue under Fairstone, which plans to keep the commercial headquarters in Montreal and maintain Éric Provost as CEO.
How the Commercial Business Will Operate Under Fairstone
Fairstone’s acquisition allows it to deepen its footprint in specialized commercial lending, including real estate financing, equipment lending, intermediary services, and capital markets. Provost said the merger strengthens Laurentian’s commercial niche while offering continuity to clients. The deal also extends Fairstone’s rapid expansion—coming just a year after its merger with Home Trust, which brought its customer base to two million.
National Bank Gains Scale Without Legacy Challenges
National Bank’s purchase includes approximately $10.9 billion in retail loans and deposits and $1.4 billion in small- and medium-business accounts. Analysts say National benefits by expanding its presence in Quebec without taking on Laurentian’s branch legacy. Jefferies analyst John Aiken called the deal a positive development, noting that acquiring assets at book value gives National an advantageous position in its home market.
Approval Process and Shareholder Support
Fairstone will pay shareholders $40.50 per Laurentian share in cash, with National’s payment determined at closing based on outstanding balances. The transaction still requires approval from two-thirds of Laurentian shareholders. The Caisse de dépôt et placement du Québec, which holds about eight per cent of shares, has already signaled its support, citing a competitive banking environment and the strategic benefits of the deal.
What Happens Next for Customers and Employees
With approvals pending, customers are expected to transition gradually, with National promising improved digital tools and expanded service options. For employees, uncertainty remains as branch operations wind down and hiring processes begin. If approved, the split is expected to mark one of the most significant restructurings of a Canadian bank in recent years—closing a chapter on Laurentian’s traditional retail presence while pushing its commercial brand into a new era under Fairstone.
