Bank of Montreal (BMO) has purchased an Australia-based capital markets business, expanding its metals and mining investment banking unit. The Canadian lender struck a deal to acquire the capital markets division of Euroz Hartleys Group Ltd., a Perth-based firm specializing in metals and mining equity capital markets, mergers and acquisitions, and strategic advisory, for 145 million Australian dollars ($142 million) in an all-cash transaction.
Strategic Expansion in Metals and Mining
Australia serves as a major hub for financing the metals and mining sector, a complex and capital-intensive industry. BMO’s metals and mining business has grown significantly, and the bank views it as a template for improvement in other areas. Since 2018, revenue in the franchise has more than tripled, according to BMO head of capital markets Alan Tannenbaum during an investor presentation.
The mining and metals business is the second-largest revenue generator in BMO’s investment and corporate banking unit, contributing 15% of the division’s total revenue in 2025. The unit posts an average return on equity (ROE) of over 30% among clients with six or more products, a closely watched profitability measure.
Blueprint for Bank-Wide Profitability
Mr. Tannenbaum has described the metals and mining business as a blueprint for BMO’s ambition to improve bank-wide profitability. In 2024, BMO set a goal of raising its overall ROE to 15% by the end of 2027. The Euroz Hartleys deal bolsters BMO’s global presence in metals and mining and will improve clients’ access to capital across markets, said Carrie Cook, BMO global head of investment and corporate banking, in a statement late Monday evening.
“As capital formation continues to shift globally, our clients increasingly expect seamless access to investors and opportunities across markets,” Ms. Cook said.
Operational Details and Employee Integration
BMO has operated in Australia since 2004 from its Melbourne office. After the deal closes, approximately 40 employees from Euroz Hartleys are expected to join BMO’s capital markets division. Euroz Hartleys offers private wealth, institutional broking, and corporate finance services. The Australian firm projects revenue of up to A$142 million and group net profit of up to A$16 million for the 2026 fiscal year, according to a company statement.
Euroz Hartleys’ private wealth business, which provides investment advice and financial planning to high-net-worth clients, will enter into a strategic agreement with BMO while remaining independent. The transaction is expected to close later this year, pending shareholder and regulatory approvals.
