Federal government has approved the acquisition of the Schedule 1 bank
Digital bank WealthONE Bank of Canada will be acquired by a consortium of Canadian investors following the approval of the deal by the federal government.
The investors, led by Globalive, announced their intention to acquire a majority stake in the Schedule 1 bank in February 2024 and they are now able to acquire all the issued and outstanding shares in the bank.
Globalive is the diversified investment company of Anthony Lacavera and partners who have backed over 150 ventures and launched 12 of their own over a quarter of a century. Lacavera has previously stated that he wants to bring the same challenge to Canada’s banking “oligopoly” as he did in the telecoms sector with Freedom Telecom.
"We are taking a long-term growth approach with WealthONE, with a consortium of strategic investors alongside permanent capital from Globalive," said Lacavera. "We look forward to closing the transaction, capitalizing the Bank, and supporting its next phase of growth."
Toronto headquartered WealthONE was launched a decade ago and offers everyday banking, borrowing, savings and investing services for customers in all provinces except Quebec. It will continue to operate as a federally regulated Schedule I bank under its current charter, with no changes to its day-to-day operations.
"We're very happy to partner with Globalive, whose strategic vision aligns perfectly with our commitment to supporting customers with practical financial solutions,” said Paul Leonard, President and CEO of WealthONE.
The deal is the largest acquisition of a Canadian bank since National Bank of Canada announced its plan to acquire Canadian Western Bank a year ago. The deal was finalized in February this year. Other major deals include RBC’s acquisition of HSBC Canada which completed in March 2024 having been approved just before Christmas 2023.
