EQB secures final approval for PC Financial acquisition and prepares for closing to bring competitive change to Canadian banking
- Final approval from The Minister of Finance and National Revenue concludes the regulatory review process, clearing the path for the acquisition to be completed
- This milestone enables EQB to work toward the closing of the acquisition and accelerating competition and innovation in Canadian banking with Canada's first ever Challenger-driven, loyalty-linked banking ecosystem
- The acquisition and new long-term strategic relationship between EQB and Loblaw will unlock benefits for millions of Canadians, including more products and services, and, in the future, more ways to earn rewards
- The acquisition is expected to close in the summer of 2026, subject to customary closing conditions
TORONTO, May 5, 2026 /CNW/ - EQB Inc. ("EQB") (TSX: EQB) and Loblaw Companies Limited ("Loblaw") (TSX: L) announce that final approval has been received from the Federal Minister of Finance and National Revenue for EQB's previously announced acquisition of PC Financial1 from Loblaw (the "Acquisition"). The completion of the Acquisition will cement EQ Bank's position as Canada's Challenger Bank™ and its unique ability to strengthen competition and drive innovation, while making a meaningful difference for millions of Canadians at a time when it matters most.
The Minister's approval represents the successful conclusion of a comprehensive regulatory review, following a recommendation from the Office of the Superintendent of Financial Institutions (OSFI) and clearance from the Competition Bureau in March 2026.
"We applaud the swift actions of the Federal government to enable us to move with pace to drive improvement in banking competition, affordability and innovation for Canadians," said Chadwick Westlake, President and CEO, EQB. "This approval signals the government's clear commitment to strengthening Canada's economy and fostering competition and innovation here at home. It is an important step towards closing the acquisition of PC Financial and to building a more dynamic banking system. We are focused on scaling a Challenger‑led, loyalty‑linked banking ecosystem that puts more choice, value and financial momentum in the hands of everyday Canadians."
Completion of the Acquisition will mark a step‑change for EQ Bank and for Canadian banking, unlocking the opportunity for EQB to offer Canadians rewarding and unique ways to save, spend, and earn at scale in communities from coast to coast. Through the Acquisition, EQB expects to expand its total customer base to 3.3 million Canadians and add approximately $5.8 billion in assets and $800 million in direct retail deposits. As the exclusive financial services partner of PC Optimum™, one of Canada's most recognized and widely used loyalty platforms, EQB will be able to offer everyday banking, lending, payments, and rewards through a single integrated ecosystem to the more than 18 million active PC Optimum™ loyalty members.
"This acquisition unlocks significant benefits for millions of PC Financial customers and PC Optimum™ members, including a wider variety of products, services, and even more ways to earn rewards, while gaining access to EQ Bank's leading digital platform for everyday banking," said Richard Dufresne, Chief Financial Officer, Loblaw.
With the final regulatory approval obtained, EQB and Loblaw are preparing for the closing of the Acquisition, which will combine PC Financial, including the PC Mastercard suite of products, with the award-winning EQ Bank banking platform. Building on existing everyday banking, residential lending and reverse mortgage offerings, this will shape a complete, integrated Personal Banking business that raises the bar for what Canadians can expect from their bank.
EQB and Loblaw are preparing for a successful transition of PC Financial to EQB. Following the closing of the Acquisition, there will be no immediate changes to the EQ Bank or PC Financial customer experiences or products offered. EQB intends to share additional details in the coming months after the Acquisition has been completed.
As previously announced, in connection with the closing of the Acquisition, EQB will enter into a long-term strategic commercial arrangement with Loblaw, becoming the exclusive financial partner of the PC Optimum™ loyalty program with access to Loblaw's national retail and digital channels to market financial services products.
EQB expects the Acquisition to close in the summer of 2026, subject to customary closing conditions. EQB will include PC Financial's results in EQB's consolidated financial results from the date of closing.
Disclaimer
1 On December 3, 2025, EQB and Loblaw entered into a definitive agreement pursuant to which EQB will acquire PC Financial, which is comprised of President's Choice Bank ("PC Bank"), PC® Financial Insurance Agency Inc., PC® Financial Insurance Brokers Inc. and certain other affiliated entities of PC Bank. In connection with the closing of the acquisition, EQB will enter into a long-term strategic relationship with Loblaw pursuant to a commercial agreement to become the exclusive financial partner of the PC Optimum™ loyalty program.
About EQB Inc.
EQB Inc. (TSX: EQB) is a leading digital financial services company with $142 billion in combined assets under management and administration (as at January 31, 2026). It offers personal and commercial banking services through Equitable Bank, a wholly owned subsidiary and Canada's seventh largest bank by assets, and wealth management through ACM Advisors, a majority-owned subsidiary specializing in alternative assets. As Canada's Challenger Bank™, Equitable Bank has a clear mission to drive change in Canadian banking to enrich people's lives. It leverages technology to deliver exceptional personal and commercial banking experiences and services to over 800,000 customers and more than six million credit union members through its businesses. Through its digital EQ Bank platform (eqbank.ca) its customers have named it one of Canada's top banks on the Forbes World's Best Banks list (2021 – 2025).
To learn more, please visit eqb.investorroom.com or connect with us on LinkedIn.
About President's Choice Financial
PC Financial®, a trusted Canadian banking brand, provides unprecedented value to customers, simplifying financial products to help Canadians Live Life Well®. Through the PC® Mastercard® and the PC Money™ Account, its dedicated base of 2.5 million customers save on banking fees and have earned more than $1 billion worth of PC Optimum™ points to redeem for beauty, groceries, gas, apparel, and other products at participating stores. The company is committed to being one of Canada's most diverse and inclusive employers and makes it a priority to reflect this in its people and culture.
Established in 1998, PC Financial® is a part of Loblaw Companies Limited. For more information, visit pcfinancial.ca.
About Loblaw Companies Limited
Loblaw is Canada's food and pharmacy leader, and the nation's largest retailer. Loblaw provides Canadians with grocery, pharmacy and health services, other health and beauty products, apparel, general merchandise, financial services and wireless mobile products and services. With more than 2,800 locations, Loblaw, its franchisees and Associate-owners employ more than 220,000 full- and part-time employees, making it one of Canada's largest private sector employers.
Loblaw's purpose – Live Life Well® – puts first the needs and well-being of Canadians who make one billion transactions annually in the company's stores. Loblaw is positioned to meet and exceed those needs in many ways: convenient locations; more than 1,100 grocery stores that span the value spectrum from discount to specialty; full-service pharmacies at nearly 1,400 Shoppers Drug Mart® and Pharmaprix® locations and in close to 500 grocery stores; PC Financial® services; affordable Joe Fresh® fashion and family apparel; and four of Canada's top-consumer brands in Life Brand®, Farmer's Market™, no name® and President's Choice®.
For more information, visit Loblaw's website at www.loblaw.ca and Loblaw's issuer profile at www.sedarplus.ca.
Investor contact for EQB Inc.:
Lemar Persaud
VP and Head of Investor Relations
[email protected]
Media contact for EQB Inc.:
Danielle Mason
Director, PR & Communications
[email protected]
Investor contact for Loblaw Companies Limited:
Roy MacDonald
VP, Investor Relations
[email protected]
Media contact for Loblaw Companies Limited:
Scott Bonikowsky
SVP, Corporate Affairs and Communication
[email protected]
Forward Looking Information
Statements made in this news release include forward-looking statements within the meaning of applicable securities laws ("forward looking statements"). Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "guidance", "planned", "estimates", "forecasts", "outlook", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur", "be achieved", "will likely" or other similar expressions of future or conditional verbs. These statements include, but are not limited to, statements relating to each of EQB's and Loblaw's objectives, strategies and initiatives; financial performance expectations, whether with respect to EQB's or Loblaw's respective businesses, the Acquisition or the Canadian economy; the expected impact of the Acquisition, including the expected impact on EQB's size, operations, capabilities, growth drivers and opportunities, activities, attributes, profile, business services portfolio and loans, revenue and assets mix, market position, profitability, performance, and strategy; the expected impact of the Acquisition on the Canadian economy and the Canadian banking industry; the anticipated benefits of the Acquisition; expectations regarding EQB's business model, plans and strategy; the anticipated timing and the various steps to be completed in connection with the Acquisition, including the anticipated timing for closing of the Acquisition; entering into the related commercial arrangement and future communications and disclosures regarding the Acquisition; the strategic fit and complementarity of PC Financial and EQB; anticipated synergies and estimated transaction and integration costs and the timing of incurrence thereof; EQB's financial performance objectives, vision and strategic goals; the economic and market review and outlook, the outlook and priorities for each of EQB's business lines; the expected impact on PC Financial customers and employees, and statements by EQB and Loblaw representatives.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of EQB or Loblaw to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: capital markets and additional funding requirements; fluctuating interest rates and general economic conditions including, without limitation, global geopolitical risk, uncertainty arising from ongoing United States/Canada tariff concerns and related impacts; business acquisitions; legislative and regulatory developments; changes in accounting standards; the nature of EQB's customers and rates of default; the possibility that the Acquisition will not be completed on the terms and conditions, or on the timing, currently contemplated, and that it may not be completed at all due to a failure to obtain or satisfy, in a timely manner or otherwise, required conditions of closing necessary to complete the Acquisition or for other reasons; the possibility of adverse reactions or changes in business relationships resulting from the announcement or completion of the Acquisition; the retention of key personnel of EQB and PC Bank; the integration of PC Financial and the realization of the anticipated benefits and synergies of the Acquisition in the timeframe anticipated, including impact and accretion in various financial metrics; competition; as well as those factors discussed under the heading "Risk Management" in EQB's Annual MD&A and in EQB's other documents filed on SEDAR+ at www.sedarplus.ca , and, in respect of Loblaw, those factors discussed under the heading "Enterprise Risks and Risk Management" in Loblaw's Annual MD&A and in Loblaw's other documents filed on SEDAR+ at www.sedarplus.ca.
All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate, and liquidity conditions affecting EQB, Loblaw and the Canadian economy. Although each of EQB and Loblaw believes the assumptions used to make such statements are reasonable at this time and has attempted to identify above and in its respective continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by EQB and Loblaw in making forward-looking statements, including without limitation, the maintenance of EQB's CET1 ratio; EQB's ability to execute its transformation plan and strategy; the successful and timely integration of EQB and PC Financial and the realization of the anticipated benefits and synergies of the Acquisition in the timeframe anticipated, including impact and accretion in various financial metrics; the ability to retain management and key employees of PC Financial; the ability of EQB to access the capital markets; the absence of significant undisclosed costs or liabilities associated with the Acquisition; the expectation of regulatory stability; no downturn in economic conditions; sufficient liquidity and capital resources; no material changes in competition, market conditions or in government monetary, fiscal and economic policies; the maintenance of credit ratings; assumptions regarding EQB's continued ability to fund its loan business, a continuation of the current level of economic uncertainty that affects real estate market conditions including, without limitation, continued acceptance of its products in the marketplace; as well as no material changes in its operating cost structure and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Neither EQB nor Loblaw undertakes to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Additional information on items of note, reported results, risk factors and assumptions related to forward-looking statements are available in EQB's Annual MD&A and Loblaw's Annual MD&A, and in each of EQB's and Loblaw's other public filings available on SEDAR+ at www.sedarplus.ca.
This news release also contains future-oriented financial information ("FOFI") and information which could be considered to be in the nature of a "financial outlook". All FOFI contained in this news release is subject to the same assumptions, risk factors, limitations and qualifications as set forth herein. FOFI contained in this news release was made as of the date hereof, based on information available to EQB and Loblaw as of the date hereof, and is being provided to assist investors in understanding the potential financial impact of the Acquisition. Such information may not be appropriate for other purposes. The actual results of operations of EQB may vary from the amounts set forth herein and such variation may be material. Each of EQB and Loblaw disclaims any intention or obligation to update or revise any FOFI in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable securities laws.
SOURCE EQB Inc.
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