CIBC completes $5 billion PrivateBancorp buy
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. ■