U.S. Fed approves BMO's US$16.3B Bank of the West takeover
, Bloomberg News
BANK OF MONTREAL (BMO:CT)
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Bank of Montreal has received approval from the the Federal Reserve to acquire San Francisco-based Bank of the West, a combination that will create the 15th-largest U.S. lender.
After the transaction, Bank of Montreal U.S. subsidiary BMO Financial Corp. will have consolidated assets of US$286.8 billion, representing about one per cent of those held by insured depository institutions in the U.S., according to the Fed. The Office of the Comptroller of the Currency also said it green-lit the merger.
Bank of Montreal said it expects the deal will close on Feb. 1. “We look forward to working with communities across our expanded U.S. footprint to help drive meaningful change at the local level through a strong combination of financial and community-driven investment,” David Casper, the bank's U.S. head, said in a statement.
Seller BNP Paribas SA will unveil the final impact of the deal on Feb. 7, along with its fourth-quarter earnings, the lender said in a statement on Wednesday. The French bank has said it would dedicate about €4 billion to stock repurchases.
The US$16.3 billion deal, the largest ever by a Canadian bank, expands Bank of Montreal beyond its stronghold in the Midwest, across the western U.S. and into California, giving it an active presence in 32 states. When it announced the acquisition, the Canadian bank estimated it would get 1.8 million new customers and US$105 billion in assets.
Bank of Montreal struck the deal when it was flush with capital because regulators had prevented Canada's big lenders from buying back shares or raising their dividends for more than a year. More recently, Bank of Montreal was forced to sell US$2.33 billion in equity to top up its capital levels after Canada's banking regulator increased the industry's required capital buffers.
Toronto-Dominion Bank is still awaiting regulator approval for its own major U.S. deal, the US$13.4 billion acquisition of First Horizon Corp.
Los Angeles FC arena changes its name to BMO Stadium
The Associated Press
Los Angeles FC's home arena is changing its name from Banc of California Stadium to BMO Stadium.
LAFC announced the new naming rights deal Thursday for the five-year-old arena, which was built by the expansion Major League Soccer Club. The stadium also is the home of the NWSL's Angel City FC.
BMO, also known as the Bank of Montreal, is a Canadian financial firm moving aggressively into the U.S. with a proposed takeover of California-based Bank of the West. BMO also owns the naming rights to Toronto FC's home arena, BMO Field.
The name change in Los Angeles has been brewing since 2020, when Banc of California backed out of its reported 15-year naming rights deal first signed in 2016. The stadium continued to use its old name for the past two-and-a-half seasons while searching for a new sponsor.
LAFC won its first MLS Cup championship on the field last fall, beating Philadelphia on penalty kicks to claim the title. LAFC also has won two Supporters' Shield titles as the league's best regular-season team during its five years in the stadium, including last year.
BMO also announced a partnership deal with Angel City.
LAFC's stadium has been sold out for every MLS regular-season and playoff match since its opening in 2018, according to the club. The stadium has been widely praised for its style, amenities and an atmosphere created largely by the raucous and most ardent supporters who stand in a section of the famed North End of the arena.
The stadium is next door to the 99-year-old Los Angeles Memorial Coliseum in Exposition Park, immediately south of downtown Los Angeles.
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