Butterfield to buy control of CIBC Caribbean in $1.8B power move

The Bank of N.T. Butterfield & Son (NYSE:NTB) entered into a definitive agreement to acquire a controlling 91.7% stake in CIBC Caribbean Bank from Canadian Imperial Bank of Commerce.

The $1.794 billion transaction will create a consolidated banking and wealth management platform managing approximately $29 billion in total assets across international financial centers and highly competitive island markets.

The total financial consideration features a blend of cash and equity.

Butterfield will pay $1,091 million in cash alongside $703 million in newly issued common shares.

The stock portion of the deal values the equity using a 10-day volume-weighted average price (VWAP) of $55.66 on the New York Stock Exchange as of May 27, 2026.

This translates to an aggregate buyout price of $1.14 per individual CIBC Caribbean share.

Under the transaction terms, which received unanimous approval from Butterfield's board of directors, the Bermuda-based company will buy CIBC Investments (Cayman), the direct holding vehicle for the 91.7% stake.

Following the initial closing, Butterfield will launch a mandatory take-over bid for the remaining 8.3% of outstanding shares held by minority investors, aiming for 100% ownership.

Minority shareholders will receive identical economic terms, with the added flexibility to swap up to 100% of their holdings for Butterfield stock to retain their equity footprint in the expanded entity.

The transaction is slated to officially close in the first half of 2027, contingent upon receiving standard regulatory sign-offs and Butterfield shareholder approvals.