Butterfield to Buy CIBC Caribbean Operations
Butterfield Group has agreed to acquire a 91.7% stake in CIBC Caribbean Bank Limited for $1.8 billion, creating a regional giant. The deal, which includes $1.09 billion in cash and the remainder in shares, is expected to close in the first half of 2027, pending regulatory approval.
The acquisition is at least the third time in the past seven years that the Canadian Imperial Bank of Commerce (CIBC) has attempted to sell some of its Caribbean interests. CIBC has a presence in 10 countries and is based in Barbados.
The new banking group will hold an estimated $29 billion in assets. Michael Collins, Butterfield’s chairman and chief executive, said the deal combines two complementary banks with significant local scale advantages and time-honored customer relationships in their respective core jurisdictions.
The Bermuda-based Butterfield Group—formerly The Bank of N.T. Butterfield & Son Limited—also operates in The Bahamas, the Cayman Islands, the Channel Islands, Singapore, Switzerland, and the U.K. CIBC will hold about 22% of the enlarged Butterfield Group and will have the right to appoint two directors to the board.
Mariano Browne, former Butterfield CEO, noted that the acquisition could make Butterfield the biggest bank in the region, with a retail and business portfolio spanning the entire region. They expect this deal to mark a shift in the Caribbean financial sector.
Butterfield has promised to maintain CIBC’s Barbados office, with customers expecting no immediate changes. Existing branches will remain open, and clients can expect improved cross-border payments and expanded consumer, digital, and merchant banking.
In the middle of this development, it’s clear that the Caribbean financial sector is undergoing significant changes, driven by consolidation and expansion efforts. As a result, the region’s banking sector is likely to become more integrated, with a few large players dominating the market.
CIBC attempted to list FirstCaribbean on U.S. stock markets to raise up to $240 million but withdrew the application less than a month later after failing to drum up sufficient investor interest.
A 2019 deal to sell 66.7% of CIBC to GNB Financial Group for $797 million fell through after the deal failed to secure regulatory approval. The team at Butterfield is now focused on completing the current acquisition.
Butterfield Group is expected to create a regional giant, with a significant presence in the Caribbean financial sector. As the deal awaits regulatory approval, customers and investors are watching closely to see how the new banking group will shape the region’s banking sector.
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