Butterfield has signed a definitive agreement to purchase CIBC’s 91.7% holding in CIBC Caribbean Bank in a deal that would combine the two groups into a banking and wealth management business with about $29bn in assets.
The agreed consideration totals $1.8bn.
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This consists of $1.09bn in cash and $703m in Butterfield shares, with the share element priced using Butterfield’s 10-day NYSE VWAP of $55.66 on 27 May 2026.
As part of the transaction, Butterfield will acquire CIBC Investments (Cayman), which holds CIBC’s interest in CIBC Caribbean.
After that step, Butterfield plans to launch a mandatory take-over bid for the remaining 8.3% of CIBC Caribbean shares held by minority investors, aiming to secure full ownership, subject to legal and regulatory requirements.
If minority shareholders choose the same mix of cash and shares as CIBC, they would together own about 2% of Butterfield after the take-over process is completed.
CIBC president and CEO Harry Culham commented: “The entire CIBC Caribbean team led by Mark St. Hill has built a strong, client-focused bank across the region, and we look forward to realising the strategic benefits of this transaction to deliver more for all stakeholders.”
The enlarged group would extend its corporate, personal and wealth management offering across the combined customer base. It also said customers should see broader cross-border payment processing, stronger consumer and merchant banking services, and further spending on technology and digital banking systems.
The bank said both businesses would keep their existing operating footprint, including CIBC Caribbean’s regional headquarters in Barbados, with no change to continuity for customers and staff.
The transaction is expected to complete in the first half of 2027, pending regulatory clearance and other customary closing conditions.
Once the deal closes, Butterfield’s ordinary shares are set to remain listed on the New York Stock Exchange and the Bermuda Stock Exchange.
The bank also intends to seek secondary listings on the Barbados Stock Exchange, the Bahamas International Securities Exchange and the Trinidad & Tobago Stock Exchange, subject to local listing and regulatory requirements.
CIBC is expected to own about 22% of the combined group after completion.
Butterfield’s Chairman and CEO Michael Collins said: “Since Butterfield’s 2016 listing on the NYSE, we have successfully grown and enhanced profitability through bank and trust acquisitions. This deal combines two storied and complementary banks, with significant local scale advantages and time-honoured customer relationships in their respective core jurisdictions.
“The transaction will offer both scale and diversification to the benefit of all stakeholders, positioning Butterfield as a leading independent bank and wealth manager operating across international financial centres and attractive Caribbean markets.”
