BMO Financial Group’s US$16.3 Billion Acquisition of Bank of the West

Wachtell, Lipton, Rosen & Katz and Osler, Hoskin & Harcourt represented BMO in the transaction. Sullivan & Cromwell advised BNP Paribas.

BMO Financial Group (TSX: BMO) (NYSE: BMO), and its indirect wholly-owned Chicago-based subsidiary BMO Harris Bank N.A. (together, “BMO”), announced the signing of a definitive agreement with BNP Paribas (XPAR: BNP) to acquire Bank of the West and its subsidiaries, with assets as of September 30, 2021 of approximately C$135 billion (US$105 billion). This acquisition aligns with BMO’s strategic, financial and cultural objectives.

Under the terms of the agreement, BMO will acquire Bank of the West for a cash purchase price of US$16.3 billion, or US$13.4 billion net of estimated US$2.9 billion of excess capital (at closing) at Bank of the West.  BMO will fund the transaction primarily with excess capital reflecting its strong capital position and anticipated capital generation.

Headquartered in San Francisco, Bank of the West operates more than 500 branches and offices in 24 states (primarily in the Western and Midwestern parts of the United States), employs more than 9,000 team members, and serves nearly 1.8 million customers. Bank of the West has a total balance sheet size of US$105 billion in assets and US$89 billion in deposits as of end September 30, 2021.

Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in North America. With total assets of $988 billion as of October 31, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

BMO Capital Markets and Morgan Stanley & Co. LLC acted as financial advisors to BMO.

The Wachtell Lipton’s team was led by partners Edward D. Herlihy (Picture) and Nicholas G. Demmo and included Emily J. Hantverk, Associate, Ellen E. Choe, Associate, Derrick L. Parker Jr., Associate, Charles C. See, Law Clerk (Corporate), Richard K. Kim, Partner, Rosemary Spaziani, Of Counsel (Bank Regulatory), Jeannemarie O’Brien, Partner, Amanda K. Toy, Associate, Raquel V.L. Begleiter, Law Clerk (Executive Compensation and Benefits), Damian G. Didden, Partner (Antitrust), T. Eiko Stange, Partner, Swift S.O. Edgar, Associate (Tax), and Bradley R. Wilson, Partner (Litigation).

The Osler, Hoskin & Harcourt team consisted of Jeremy Fraiberg, Andrew MacDougall (Corporate) Patrick Marley, Taylor Cao (Tax) and Elizabeth Sale (Banking & Financial Services).

The S&C team advising BNPP includes Rodge Cohen, Mitch Eitel and Jared Fishman. Eric Wang and Jameson Lloyd are advising on tax matters. Jeannette Bander is advising on executive compensation matters. Justin Orr is advising on intellectual property matters. Joe Matelis, Juan Rodriguez and Eric Queen are advising on antitrust and competition matters. Matt Brennan is advising on environmental matters. Olivier de Vilmorin is advising on French law matters.

Involved fees earner: Taylor Cao – Osler Hoskin & Harcourt; Jeremy Fraiberg – Osler Hoskin & Harcourt; Andrew MacDougall – Osler Hoskin & Harcourt; Patrick Marley – Osler Hoskin & Harcourt; Elizabeth Sale – Osler Hoskin & Harcourt; Jeannette Bander – Sullivan & Cromwell; Matthew Brennan – Sullivan & Cromwell; Rodgin Cohen – Sullivan & Cromwell; Olivier de Vilmorin – Sullivan & Cromwell; Mitchell Eitel – Sullivan & Cromwell; Jared Fishman – Sullivan & Cromwell; Jameson Lloyd – Sullivan & Cromwell; Joseph Matelis – Sullivan & Cromwell; Justin Orr – Sullivan & Cromwell; Eric Queen – Sullivan & Cromwell; Juan Rodriguez – Sullivan & Cromwell; Eric Wang – Sullivan & Cromwell; Ellen Choe – Wachtell, Lipton, Rosen & Katz; Nicholas Demmo – Wachtell, Lipton, Rosen & Katz; Damian Didden – Wachtell, Lipton, Rosen & Katz; Swift Edgar – Wachtell, Lipton, Rosen & Katz; Emily Hantverk – Wachtell, Lipton, Rosen & Katz; Edward Herlihy – Wachtell, Lipton, Rosen & Katz; Richard Kim – Wachtell, Lipton, Rosen & Katz; Jeannemarie O’Brien – Wachtell, Lipton, Rosen & Katz; Derrick Parker – Wachtell, Lipton, Rosen & Katz; Rosemary Spaziani – Wachtell, Lipton, Rosen & Katz; Eiko Stange – Wachtell, Lipton, Rosen & Katz; Amanda Toy – Wachtell, Lipton, Rosen & Katz; Bradley Wilson – Wachtell, Lipton, Rosen & Katz;

Law Firms: Osler Hoskin & Harcourt; Sullivan & Cromwell; Wachtell, Lipton, Rosen & Katz;

Clients: BMO Financial Group; BNP Paribas;