EQ Bank is making a major play in Canadian banking, acquiring PC Financial from Loblaw in an $800-million deal that merges two digital leaders aiming to chip away at the dominance of Canada’s Big Five. The partnership brings EQ Bank’s online savings products together with PC’s credit and loyalty ecosystem, backed by 17 million PC Optimum members.
Loblaw will hold a 17 percent stake in EQB. Analyst Keldon Bester says the merger strengthens competition rather than shrinking it. Customers gain more products and 2,500 in-store touchpoints, though EQB expects $30 million in cost synergies. Closing is expected next year.
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