Butterfield to acquire control of CIBC Caribbean in US$1.8b deal

The Bank of NT Butterfield & Son Limited is set to acquire control of CIBC Caribbean Bank Limited in a US$1.8 billion deal expected to create a regional banking and wealth management group with approximately US$29 billion in assets.

The acquisition, announced Thursday, will see Butterfield acquire Canadian Imperial Bank of Commerce’s 91.7 per cent stake in CIBC Caribbean through a combination of cash and shares.

Butterfield said the transaction would strengthen cross-border banking services, improve payment processing capabilities, expand merchant and consumer banking offerings, and support further investments in digital banking infrastructure across the Caribbean.

The Bermuda-based institution also said it intends to maintain CIBC Caribbean’s operational footprint, including its regional headquarters in Barbados, while continuing community outreach, financial education, and sustainability initiatives across the region.

Butterfield Chairman and Chief Executive Officer Michael Collins described the transaction as a major strategic move for the bank.

“This deal combines two storied and complementary banks, with significant local scale advantages and time-honoured customer relationships in their respective core jurisdictions,” Collins said in a statement.

He said the acquisition would position Butterfield as “a leading independent bank and wealth manager operating across international financial centres and attractive Caribbean markets”.

CIBC Caribbean Chief Executive Officer Mark St. Hill said the merger would unite two institutions with similar values and a strong focus on relationship banking and community impact.

“For our clients, employees and communities, this combination brings together two organizations with shared values and a common focus on relationship banking, innovating and community impact,” St. Hill said.

The transaction remains subject to regulatory approvals and additional steps, including a mandatory takeover bid by Butterfield for the remaining 8.3 per cent of CIBC Caribbean shares held by minority shareholders.

The deal represents one of the largest banking transactions in the Caribbean in recent years amid ongoing consolidation and digital transformation within the regional financial sector. 

janet.silvera@gleanerjm.com

Follow The Gleaner on X, formerly Twitter, and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.