TORONTO - EQB Inc., the parent company of Equitable Bank, has announced its agreement to acquire PC Financial and its related insurance companies from Loblaw Companies Ltd. for approximately $800 million. This acquisition marks a significant shift in Canada’s financial sector, as EQB aims to enhance its digital banking capabilities and expand its customer base. As part of the deal, Loblaw will take a minority stake of about 16 percent in EQB. Additionally, EQB will become the exclusive financial partner for Loblaw’s PC Optimum loyalty program. Chadwick Westlake, CEO of EQB, stated, "Today’s announcement marks a new era for banking in Canada. We’re creating a better banking ecosystem for all Canadians that prioritizes innovation and value." The acquisition will increase EQB's customer base by approximately 3.5 million, including over two million active PC Mastercard clients. This is a significant growth from EQB's current customer base of 607,000. The deal will also add about $5.8 billion in assets to EQB's existing portfolio of $138 billion. The transaction includes the purchase of President’s Choice Bank, PC Financial Insurance Agency Inc., and PC Financial Insurance Brokers Inc. Richard Dufresne, CFO of Loblaw, noted that this partnership allows Loblaw to concentrate on its core retail business while positioning PC Financial products for better long-term growth. He remarked, "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 previously reduced its banking exposure in 2017 by ending a partnership with CIBC, which rebranded the bank as Simplii. Since then, Loblaw has reintroduced some banking options under its PC Money brand. The collaboration with EQB will provide PC Financial customers access to EQ Bank’s digital platform and a wider range of savings and registered accounts. In return, EQ Bank customers will benefit from PC Financial’s credit cards and access to retail banking at approximately 2,500 Loblaw stores, over 180 in-store banking pavilions, and a network of more than 600 ATMs across Canada. The companies plan to phase out the PC Financial brand over time, transitioning to the EQ Bank name, while Loblaw will retain ownership of the PC Optimum program. The acquisition is expected to close in 2026, pending regulatory approvals and other closing conditions. This announcement comes shortly after Laurentian Bank revealed its plans to split and sell certain operations to Fairstone Bank and National Bank. The acquisition of PC Financial is seen as a strategic move for EQB, which is one of the last smaller publicly traded banks in Canada. Analysts view the acquisition positively, citing the potential for EQB to expand its brand and distribution capabilities. However, some express skepticism about the cross-selling opportunities between EQB’s mortgage customers and PC Financial’s credit card products. Overall, the acquisition is expected to reshape the competitive landscape of digital banking in Canada, providing enhanced services and products to a broader customer base.