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CIBC completes $5 billion PrivateBancorp buy

Staff Writer |
Canadian Imperial Bank of Commerce (CIBC) has completed the $5 billion acquisition of Chicago-based PrivateBancorp, which will help it diversify from its domestic market.

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CIBC, Canada's fifth-biggest lender, has the biggest exposure to the country's housing markets.

Concerns are mounting about falling home prices in Toronto and Vancouver, and the bank has long coveted a major U.S. acquisition.

CIBC Chief Executive Officer Victor Dodig said he had talked about a deal with PrivateBank CEO Larry Richman for almost three years.

The combined U.S. business will be renamed CIBC beginning in the fourth quarter.

CIBC is paying $2.4 billion in cash and the remainder in shares. It expects the acquisition will add to its earnings within three years.

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