Butterfield Buys CIBC Caribbean for $1.8 Billion

Butterfield has entered into a definitive agreement to acquire CIBC's 91.7% stake in CIBC Caribbean Bank. This strategic move will combine the two financial entities, forming a significant banking and wealth management business with approximately $29 billion in assets. The total consideration for this acquisition is $1.8 billion, comprising $1.09 billion in cash and $703 million in Butterfield shares.

Following the initial acquisition of CIBC Investments (Cayman), Butterfield intends to launch a mandatory takeover bid for the remaining 8.3% of CIBC Caribbean shares. This aims to achieve full ownership, subject to regulatory and legal requirements. The enlarged group anticipates extending its corporate, personal, and wealth management offerings.

Customers are set to benefit from improved cross-border payment processing, stronger consumer and merchant banking services, and increased investment in technology and digital banking. Both banks will maintain their current operating footprints, including CIBC Caribbean's regional headquarters in Barbados, ensuring continuity for staff and clients.

The transaction is scheduled for completion in the first half of 2027, contingent upon regulatory clearance and standard closing conditions. Butterfield's ordinary shares will remain listed on the NYSE and Bermuda Stock Exchange, with plans for secondary listings on the Barbados, Bahamas, and Trinidad & Tobago stock exchanges.