Butterfield Bank said its acquisition of CIBC Caribbean remains on track for completion in the first half of 2027.
The update came during the bank’s second quarter earnings webcast, where group chief risk officer Bri Hidalgo said work is continuing across regulatory approvals, financing and integration planning following the announcement of the transaction on 28 May.
Hidalgo said Butterfield had made “excellent progress towards closing, which we expect to be in the first half of 2027”.
“Our work streams are focusing on securing key regulatory, governance, financing and stakeholder approvals required to complete the transaction and prepare for integration,” she added.
Butterfield’s immediate priorities include filing and completing regulatory licensing applications, finalising pro forma financial statements, obtaining board approval and securing shareholder approval at the bank’s annual general meeting in mid-September.
Alongside that work, the integration team is conducting what Hidalgo described as “credit-related reverse diligence, jurisdictional stakeholder engagement across key Caribbean markets, and communication planning for clients, employees and other stakeholders”.
A second work stream is focused on funding and transaction readiness.
Hidalgo said updated CIBC Caribbean financial data is being incorporated at key milestones to support pro forma financial statements and transaction analysis while the approval process continues.
“Overall, we are moving forward at pace, first securing approvals and transaction prerequisites, then advancing financing and stakeholder engagement activities while building the operational and TSA framework needed for closing and eventual post-closing integration,” she said.
Hidalgo added that Butterfield “remain[s] on schedule and currently expect[s] all required milestones to be achieved,” saying “financial performance of both companies remains on track and consistent with financial projections underlying the acquisition model”.
Butterfield announced in May that it had agreed to acquire Canadian Imperial Bank of Commerce’s 91.7% stake in CIBC Caribbean through the purchase of CIBC Investments (Cayman) Limited in a transaction valued at about US$1.8 billion.
The purchase price consists of $1.09bn in cash and $703 million in Butterfield shares. The deal values CIBC Caribbean shares at $1.14 each.
Once completed, the combined banking group is expected to have about $29bn in assets. Canadian Imperial Bank of Commerce will retain about a 22% stake in the combined entity, subject to shareholder and regulatory approvals.
