In a major shakeup for Canada's financial services sector, EQB Inc., the parent company of Equitable Bank, has struck a deal to acquire the PC Financial banking business and related insurance operations from grocery giant Loblaw Cos. Ltd. The transaction is valued at $800 million and was announced on Wednesday, December 4, 2025.
Strategic Partnership and Deal Structure
As part of the agreement, Loblaw will not receive the full sum in cash. Instead, the supermarket chain will take a minority stake in EQB, cementing a long-term strategic relationship between the two companies. A cornerstone of this partnership is an exclusive arrangement where EQB becomes the financial partner for Loblaw's massive PC Optimum loyalty program, one of the largest in the country.
The purchase price represents approximately 1.15 times PC Financial's book value, excluding excess capital. Loblaw stated it will release and receive about $500 million in excess capital from PC Bank, bringing the total value of the transaction to the retailer to an estimated $1.3 billion.
Creating a Digital Banking Powerhouse
The merger is positioned as a union of two pioneers in no-fee, digital-first banking. The combined entity aims to achieve significant scale and reduce costs. PC Financial's over two million customers will gain access to EQ Bank's digital platform and its broader suite of savings and registered accounts.
In return, EQ Bank's customers will benefit from PC Financial's credit card portfolio—one of the largest Mastercard portfolios in Canada—and gain in-person banking access. This includes services at roughly 2,500 Loblaw stores nationwide, more than 180 in-store banking pavilions, and an extensive ATM network.
Chadwick Westlake, Chief Executive Officer of EQB, emphasized the transformative potential of the deal. "By combining EQ Bank’s exceptional digital platform and product shelf with PC Financial’s spending solutions, distribution and expertise in loyalty, we’re creating a better banking ecosystem for all Canadians," he said in a statement.
Expanded Scale and Market Context
The acquisition will substantially grow EQB's footprint. It adds over $5.8 billion in assets and more than $800 million in direct retail deposits. Post-merger, EQB's total customer base will swell to more than three million Canadians.
This landmark deal arrives amidst significant consolidation in the Canadian banking industry. It was announced just one day after Stephen Smith's Fairstone Bank of Canada revealed its plan to acquire Laurentian Bank of Canada for $1.9 billion, signaling a dynamic period of change among challenger banks and traditional institutions.
The transaction also marks a pivotal moment for EQB's leadership. Westlake, a former Bank of Nova Scotia veteran who returned to EQB as CEO in August 2024, is steering the bank forward following the sudden passing of its long-time CEO, Andrew Moor, less than six months prior.
