Canada’s seventh-largest bank has agreed to acquire PC Financial from Loblaws Co. Ltd. in the latest deal to shake up the country’s financial landscape.
EQB Inc., the company behind digital EQ Bank, is paying $800 million in shares and cash in a deal that will see Loblaw take about a 16 per cent stake in the bank while EQ will become the exclusive financial partner of the PC Optimum loyalty program.
“Today’s announcement marks a new era for banking in Canada,” said EQB chief executive Chadwick Westlake in a statement.
“We’re creating a better banking ecosystem for all Canadians that prioritizes innovation and value.”The deal is substantial for EQ Bank, which is the last of the smaller publicly-traded banks left in Canada after Laurentian Bank announced Tuesday it was being split up and sold to Fairstone Bank and National Bank. Other banks bought up in recent years include Canadian Western Bank and HSBC Canada.
The deal will expand EQ’s customer base by about 3.5 million, including more than two million active PC Mastercard clients, compared with EQ Bank’s customer base of 607,000. It also adds about $5.8 billion in assets to EQB’s existing $138 billion in assets.
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It will acquire President’s Choice Bank, PC Financial Insurance Agency Inc., PC Financial Insurance Brokers Inc. and other entities of PC Bank.
The deal allows Loblaw to focus on its core retail business while positioning PC Financial products for better long-term growth, said Loblaw CFO Richard Dufresne said in a statement.
“This partnership with EQ Bank allows us to pair one of Canada’s most loved loyalty programs and suite of financial products with a true leader in digital banking.”
Loblaw had already significantly reduced its banking exposure in 2017 when it ended a PC Financial partnership with CIBC, which went on to rebrand the bank as Simplii. Loblaw had since returned to some account options under its PC Money brand.
The collaboration with Loblaw means EQ Bank customers will benefit from PC Financial’s credit cards as well as over 180 in-store banking pavilions and more than 600 ATMs across the country.
The companies say that over time the EQ Bank name will replace the PC Financial brand, while Loblaw will keep ownership of the PC Optimum program.
The deal is expected to close in 2026 and is subject to closing conditions and regulatory approvals.
The acquisition was announced as the Toronto-based firm reported earnings for the fourth quarter and the 2025 fiscal year.
© 2025 The Canadian Press