Fairstone Bank of Canada has announced plans to acquire Laurentian Bank of Canada in a cash deal valued at $1.9 billion. This acquisition is part of Laurentian's strategy to focus on its commercial banking operations. The deal will see Fairstone purchase all common shares of Laurentian at a price of $40.50 per share, representing a 20 percent premium over the bank's closing share price on December 1. Laurentian Bank's CEO, Éric Provost, stated that this merger will enhance their specialized commercial business. Laurentian Bank, which is based in Montreal, will retain its brand and headquarters following the acquisition. Provost will continue to lead the bank as it shifts its focus towards commercial real estate lending, inventory and equipment financing, and capital markets activities. In addition to the acquisition by Fairstone, National Bank of Canada will purchase Laurentian's retail and small business banking portfolios, along with its syndicated loan portfolio. As of July 31, Laurentian's retail loans and deposits were approximately $3.3 billion and $7.6 billion, respectively, while its small and medium-sized enterprise loans and deposits were around $800 million and $600 million. National Bank's CEO, Laurent Ferreira, expressed that this transaction aligns with their growth strategy in Quebec, stating, "Leveraging our strong presence in Quebec, this transaction aligns with our domestic growth strategy and is a natural fit." Following the completion of the deal, Laurentian Bank will close its branches in Quebec. Employees affected by the closures will not be transferred to National Bank but will have the opportunity to apply for open positions at the bank. Caisse de dépôt et placement du Québec, which owns about 8 percent of Laurentian's shares, has agreed to support the deal, pending certain conditions. The transaction is expected to be presented to shareholders in the first quarter of 2026, marking a significant shift in the landscape of banking in Canada.