BASSETERRE, St Kitts -- AFTER years of speculation and negotiations, CIBC Caribbean has confirmed that a majority stake in the regional banking institution has been acquired by The Bank of N.T. Butterfield & Son Limited, headquartered in Hamilton, Bermuda and listed on the New York Stock Exchange.
According to a statement issued from CIBC Caribbean’s Barbados headquarters, the acquisition forms part of a US$1.8 billion transaction.
The bank did not indicate when the deal is expected to close or what impact, if any, it may have on operations across the region, including its branch in Basseterre.
Officials said the acquisition will create “a leading island banking institution” with approximately US$29 billion in combined assets and nearly 400 years of banking experience between the two organizations.
The statement stressed that there will be no immediate changes to daily operations. “Until close, CIBC Caribbean’s day-to-day operations will continue as they do today. After the acquisition is completed, the combined group will maintain both organizations’ operational footprints, ensuring full continuity for customers and employees,” the statement noted.
Once finalized, Butterfield will acquire CIBC Investments (Cayman) Limited, the holding company for CIBC’s 91.7 percent stake in CIBC Caribbean.
The companies said the merger is expected to strengthen banking and wealth management services across the Caribbean and other international financial centres by expanding scale, increasing diversification, and creating new growth opportunities.
They also outlined several expected benefits, including enhanced digital banking services, broader personal and corporate banking solutions, and improved cross-border capabilities.
In addition, both institutions pledged continued support for economic development initiatives, financial education programmes, sustainability efforts, and philanthropic projects throughout the region.
Despite the sale, CIBC will retain an interest in the merged entity, holding approximately 22 percent ownership and appointing two directors to Butterfield’s Board.
Butterfield Chairman and Chief Executive Officer Michael Collins described the transaction as a strategic move that strengthens both institutions.
“Since Butterfield’s 2016 listing on the NYSE, we have successfully grown and enhanced profitability through bank and trust acquisitions. This deal combines two storied and complementary banks, with significant local scale advantages and time-honored customer relationships in their respective core jurisdictions,” Collins said.
He added that the transaction positions Butterfield as a leading independent bank and wealth manager across Caribbean markets and international financial centres.
Meanwhile, CIBC Caribbean Chief Executive Officer Mark St. Hill said the merger brings together two organizations with similar values and a shared commitment to relationship banking and community development.
“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. We look forward to building on our legacy as the region’s champion in financial services,” St. Hill stated.
CIBC President and CEO Harry Culham also praised the regional bank’s leadership team, noting that the transaction is expected to provide strategic benefits for stakeholders.
Under the agreement, Butterfield will pay approximately US$1.09 billion in cash and US$703 million in Butterfield shares, bringing the total purchase price to roughly US$1.794 billion.
Butterfield also intends to launch a mandatory take-over bid for the remaining 8.3 percent of CIBC Caribbean shares held by minority shareholders, with the aim of securing full ownership, pending regulatory approval.
Minority shareholders will be offered terms equivalent to those accepted by CIBC and will also have the option of receiving compensation entirely in Butterfield shares.
