EQB Cleared to Acquire PC Financial
EQB Inc. has received clearance from Canada's Competition Bureau for its acquisition of PC Financial from Loblaw. The regulatory approval is a major milestone for the deal, which aims to expand the 'Challenger Bank's' scale and product offerings.
The deal, valued at approximately $800 million in cash and shares, was first announced on December 3, 2025. As part of the transaction, Loblaw will become a significant minority shareholder, holding about a 16% stake in EQB. This acquisition will substantially increase EQB's scale, adding nearly 3.5 million customers to its existing base. A key component of the deal is EQB's takeover of the PC Mastercard portfolio, which includes over two million active accounts, making it one of Canada's largest credit card portfolios. The transaction also includes President's Choice Bank and its insurance agency and brokers. For customers, the acquisition means EQ Bank will become the exclusive financial partner for the PC Optimum loyalty program, which Loblaw will continue to own. This integration aims to create one of the largest loyalty-linked banking systems in Canada, connecting EQB's digital banking platform with PC Optimum's more than 17 million members. The PC Financial brand will eventually transition to the EQ Bank brand over time. In the interim, both the PC Financial and EQ Bank brands will continue to operate as usual. The deal is expected to officially close sometime in 2026, pending final regulatory approvals.
