TORONTO - 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 s

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