The Bank of N.T. Butterfield & Son Limited has announced plans to acquire CIBC Caribbean Bank Limited in a major regional banking deal valued at approximately US$1.79 billion.

Under the agreement, Butterfield will acquire Canadian banking giant CIBC’s 91.7 per cent stake in CIBC Caribbean, creating a combined banking and wealth management group with roughly US$29 billion in assets across international financial centres and Caribbean markets.

The transaction, which is expected to close in the first half of 2027 pending shareholder and regulatory approvals, would significantly reshape the Caribbean banking landscape and expand Butterfield’s presence across the region.

Butterfield said the merger would strengthen corporate, personal and wealth management services while improving cross-border payment capabilities, merchant banking services and digital banking infrastructure for customers.

The company also confirmed that CIBC Caribbean’s regional headquarters in Barbados would remain operational following the acquisition, with both organisations expected to maintain their existing regional footprints.

Butterfield Chairman and Chief Executive Officer Michael Collins described the agreement as a transformational move for the Bermuda-based bank.

“This deal combines two storied and complementary banks, with significant local scale advantages and time-honoured customer relationships in their respective core jurisdictions,” Collins said.

“The transaction will offer both scale and diversification to the benefit of all stakeholders, positioning Butterfield as a leading independent bank and wealth manager operating across international financial centres and attractive Caribbean markets.”

CIBC Caribbean Chief Executive Officer Mark St Hill said the merger brings together two institutions with similar values and a shared focus on relationship banking and community development.

“For our clients, employees and communities, this combination brings together two organisations with shared values and a common focus on relationship banking, innovating and community impact,” St Hill said.

Under the terms of the agreement, Butterfield will pay a mix of cash and shares for the acquisition. The deal includes US$1.091 billion in cash and approximately US$703 million in Butterfield shares.

Butterfield also plans to launch a mandatory takeover bid for the remaining 8.3% of CIBC Caribbean shares held by minority shareholders with the goal of obtaining full ownership of the bank.

Following completion of the transaction, CIBC is expected to retain an approximately 22% stake in the combined company and will initially have the right to appoint two directors to Butterfield’s board.

Butterfield said the combined entity is expected to remain well capitalised, with projected capital levels remaining significantly above regulatory requirements.

The company also announced plans to pursue additional secondary listings on the Barbados Stock Exchange, Bahamas International Securities Exchange and the Trinidad and Tobago Stock Exchange after the transaction closes.

The acquisition comes as regional banks continue to face increasing pressure to modernise operations, improve digital services and achieve greater economies of scale in an increasingly competitive financial environment.