CIBC is selling its domestic investment banking, equities, leveraged finance and related debt capital markets businesses in the United States to Oppenheimer Holdings Inc.
The transaction also includes CIBC’s Israeli investment banking and equities business, and certain parts of other U.S. capital markets-related businesses located in Asia and the United Kingdom.
CIBC will retain its other U.S. wholesale businesses, which include real estate finance, equity and commodity structured products, merchant banking and oil and gas advisory, as well as the balance of its U.S. debt capital markets, Asia and U.K. businesses.
The bank will also maintain its corporate lending capability and its ability to distribute Canadian equities and fixed income products in the U.S. and international markets on behalf of its Canadian clients.
Under the terms of the agreement, CIBC will receive a deferred payment on the fifth anniversary of closing based on the performance of Oppenheimer’s combined capital markets business over that five-year period.
“This transaction gives CIBC the opportunity to benefit from Oppenheimer’s future success,” said the bank’s president and CEO Gerry McCaughey. “It will also permit CIBC to redeploy capital over time to further support the continued growth of our strong and profitable U.S. and international operations, as well as our core Canadian businesses.”
On Friday, CIBC’s rival, BMO Financial Group, announced it would expand in the United Kingdom. To read BMO Buying U.K.-Based Institutional Asset Manager click here.
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