Toronto-Dominion Bank is selling the retail banking businesses of 13 branches from its own and Canada Trust Co.'s Southern Ontario networks in a $51-million deal.
Nearly all of the branches are in the booming region of Kitchener-Waterloo, and all but one are being snapped up by Bank of Montreal.
The transaction is aimed at satisfying Competition Bureau concerns about TD's acquisition of Canada Trust as part of its $7.8-billion takeover of parent CT Financial Services Inc. No further branch sales are necessary to meet the bureau's conditions, a TD spokeswoman said.
Bank of Montreal is buying 12 of the bank branches in a deal valued at $50-million, and Laurentian Bank of Canada is buying the remaining branch in Paris, Ont., for an undisclosed sum.
The deal is a boon for Bank of Montreal, which acquires 11 branches in the flourishing region of Kitchener-Waterloo, as well as a location in Port Hope.
"It isn't everyday that you are able to acquire 120,000 new customers in one transaction," Bank of Montreal spokesman Joe Barbera said. "Kitchener-Waterloo has probably got one of the hottest economies in the country, right up there with Calgary. These branches are located in communities where there is high potential for good business for the bank."
In all, six TD branches and seven Canada Trust branches are changing hands.
TD officials say the deal satisfies one of two undertakings required by the Competition Bureau regarding its takeover of CT Financial. The other is the sale of CT Financial's lucrative MasterCard business.
The sale of the MasterCard portfolio is "to be announced soon," a TD spokeswoman said.
The conversion of the 13 branches will begin in July, TD said.
TD said staff at the branches being sold will all be offered employment with the banks buying the locations -- jobs that include "comparable compensation, benefits and recognition of years of service."
"Bank of Montreal and Laurentian Bank will treat staff fairly and with respect, and customers will continue to enjoy a wide range of banking services," TD Bank Financial Group vice-chairman Bob Kelly said in a statement.
THE DEAL
Bank of Montreal purchases:
In Kitchener, Ont.:
Eastwood Square TD branch
Fairway & Wilson TD branch
Highland Hills TD branch
Forest Hill Canada Trust branch
In Waterloo, Ont.:
Glen Forest Canada Trust branch
Weber & Lincoln Canada Trust branch
In Cambridge, Ont.:
King & Westminster TD branch
Queen & Guelph TD branch
Main Street Canada Trust branch
St. Andrews Canada Trust branch
In Port Hope, Ont.:
TD Bank branch
In Elmira, Ont.:
Canada Trust branch
Laurentian Bank purchase:
In Paris, Ont.:
300 Grand River St. N. CT branch
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