CIBC to buy PrivateBancorp in $3.8bn deal

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Canadian Imperial Bank of Commerce said it will buy PrivateBancorp in a $3.8bn cash-and-share deal, its biggest ever acquisition and a long-awaited expansion in U.S wealth management.

Reuters reports that CIBC has been in talks with potential U.S. targets for some time as it looked to expand its wealth management business. The bank sees the sector as a growth area that could help offset sluggish domestic growth and a low-interest-rate environment.

Some investors are also keen for Canadian banks to lessen their dependence on a domestic market that has been hurt by the prolonged slump in oil prices.

"What we're trying to achieve for our shareholders and for our clients is to have a business with a more diversified earnings stream than just relying largely on the Canadian market," CIBC Chief Executive Officer Victor Dodig said on a conference call.

To access the complete Reuters article hit the link below:

Canada's CIBC to pay $3.8 billion for PrivateBancorp, expand in U.S.

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