Bank of Montreal (BMO) has officially closed its $16.3 billion U.S. purchase of Bank of the West.
The Canadian bank said the acquisition adds nearly 1.8 million customers and 500 branches to its network and gives it a presence in 32 U.S. states.
The purchase of Bank of the West comes amid heightened regulatory scrutiny in the U.S. on acquisitions, and the banking sector.
There are also worries about a potential global recession this year due to rising interest rates and high inflation.
Those economic worries have prompted Canada’s banking regulator to increase the capital requirements on financial institutions, which has prompted Bank of Montreal to raise money through share issues and a dividend reinvestment plan.
BMO’s stock has declined 10% over the last 12 months to $133.78 per share.
