News
TORONTO, July 1, 2026 /CNW/ - EQB Inc. ("EQB") (TSX: EQB) and Loblaw Companies Limited ("Loblaw") (TSX: L) today announced the completion of EQB's acquisition (the "Acquisition") of President's Choice Bank ("PC Bank"), PC® Financial Insurance Agency Inc., PC® Financial Insurance Broker Inc. and certain affiliated entities of PC Bank (collectively, "PC Financial") from Loblaw.
The Acquisition represents a step change in EQB's position as Canada's Challenger Bank™, expanding its scale to serve nearly 4 million Canadians while broadening its diversified portfolio of financial services. This marks the start of EQB's long-term strategic relationship with Loblaw and establishes EQB as the exclusive financial services partner for the PC Optimum™ loyalty program with its more than 18 million active members.
"Today, as we celebrate Canada Day, we mark a turning point for Canadian banking," said Chadwick Westlake, President and CEO, EQB. "This is about scaling growth to elevate competition – bringing more choice, better value and rewards for everyday Canadians. The next chapter of EQB's evolution as Canada's Challenger Bank starts now."
In connection with the Acquisition, EQB welcomes two Loblaw nominees to the EQB Board of Directors, Galen G. Weston, Chairman and CEO of George Weston Limited and Chairman of Loblaw, and Richard Dufresne, President & CFO of George Weston Limited and CFO of Loblaw.
"It is a privilege to welcome Galen and Richard to the Board," said Mike Pedersen, Chair of the Board of Directors for EQB. "Their deep expertise leading one of the country's largest and most recognizable companies will be instrumental as EQB executes its focused growth strategy, scaling with purpose and discipline."
Under the agreement, EQB acquired PC Financial at 1.15x book value. The consideration was satisfied by the issuance to Loblaw of 7.2 million common shares of EQB and cash of $234.5 million. PC Bank is now a wholly owned subsidiary of Equitable Bank, with capital ratios reflecting its consolidation. EQB's Q3 results will include one month of earnings contribution from PC Financial.
There will be no immediate changes to the banking experience for PC Bank customers and the way they earn and redeem points will remain the same. PC Financial's approximately 180 in-store banking pavilions and 600+ additional ATMs at Loblaw retail locations will continue to operate in normal course, while EQ Bank's existing customers will continue to enjoy the same seamless digital banking experience, innovative products, and everyday value they know and trust. The PC Optimum™ program will continue to be owned and operated by Loblaw and the value of PC Optimum™ points remains unchanged.
In the coming months, EQB and Loblaw will begin a comprehensive plan for conversion activities, including transitioning PC Bank clients to the EQ Bank platform and introducing new ways for customers to unlock more value across the integrated platforms and the PC Optimum™ ecosystem. For more information on the expected customer experience please visit https://www.eqbank.ca/eqbank-and-pcfinancial
Required Early Warning Disclosure
Further to the requirements of National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, Loblaw will file an early warning report in connection with the completion of the Acquisition.
Immediately prior to the completion of the Acquisition, Loblaw had beneficial ownership of, or control over, 1,220,000 common shares of EQB, representing approximately 3.46% of the issued and outstanding common shares of EQB. After giving effect to the Acquisition, Loblaw has beneficial ownership of, or control over, 8,457,601 common shares of EQB, representing approximately 19.89% of the issued and outstanding common shares of EQB. In accordance with the terms of an Investor Rights Agreement between EQB, Loblaw and certain of Loblaw's affiliates, Loblaw intends to acquire additional common shares of EQB, up to a maximum of 25% of issued and outstanding shares.
From time to time, when Loblaw does not possess material non-public information about EQB or its securities, it may enter into a pre-defined plan with its broker to allow for the purchase of additional EQB common shares. Any such plans entered into with Loblaw's broker will be adopted in accordance with the requirements of applicable Canadian securities laws. Loblaw intends to enter an automatic share purchase plan with a broker on or about July 15, 2026, in order to facilitate such purchases.
A copy of the early warning report will be filed with the applicable securities commissions and will be made available under EQB's SEDAR+ profile at www.sedarplus.ca. Further information and a copy of the early warning report of Loblaw may be obtained by contacting: Nick Henn, Chief Legal Officer, George Weston Limited, (416)-922-2500.
The head office address of Loblaw is 1 President's Choice Circle, Brampton, Ontario, L6Y 5S5 Canada.
About EQB Inc.
EQB Inc. (TSX: EQB) is a leading Canadian financial services company with approximately $150 billion in combined assets under management and administration. It is the parent company of Equitable Bank, the country's seventh largest Schedule I bank by assets, which operates EQ Bank, Canada's Challenger Bank™.
Our purpose is to remake banking so every Canadian gets ahead, every day. Since 1970, we have built thoughtful financial solutions that serve nearly 4 million customers, turning everyday moments into meaningful progress. As the exclusive financial partner of Loblaw Companies Limited's PC Optimum™ loyalty program – one of Canada's largest loyalty programs with more than 18 million members – EQ Bank's financial solutions are deeply embedded into the daily lives of Canadians.
We provide personal and commercial banking services to Canadian households and businesses through everyday banking, tailored lending and connected payments, while fueling competition and choice in Canadian banking. Through our subsidiaries, we also offer home and auto insurance, estate and trust services, credit union solutions and alternative asset management.
To learn more, visit eqb.investorroom.com and eqbank.ca, or connect with us on Instagram, Facebook or LinkedIn.
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 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; 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
SVP, Investor Relations & Enterprise Performance Management
investor_enquiry@eqb.com
Media contact for EQB Inc.:
Danielle Mason
Director, PR & Communications
press@eqb.com
Investor contact for Loblaw Companies Limited:
Roy MacDonald
VP, Investor Relations
investor@loblaw.ca
Media contact for Loblaw Companies Limited:
Scott Bonikowsky
SVP, Corporate Affairs and Communication
pr@loblaw.ca
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 Transaction or the Canadian economy; the expected impact of the Acquisition and the long-term strategic relationship with Loblaw (together with the Acquisition), the "Transaction", including the expected impact on EQB's size, operations, financial performance, 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 Transaction on the Canadian economy and the Canadian banking industry; the anticipated benefits of the Transaction; expectations regarding EQB's business model, plans and strategy; EQB's CET1 ratio, capital structure and liquidity profile; Loblaw's intention to acquire additional common shares of EQB; the composition of EQB's board; the strategic fit and complementarity of PC Financial and EQB; 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 of adverse reactions or changes in business relationships resulting from the completion of the Transaction; 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 Transaction 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 Transaction 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 Transaction; 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 Transaction. 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.
