CIBC announced that it has reached an agreement with Merrill Lynch Canada to acquire Merrills Canadian retail brokerage, asset management and securities services businesses, for its CIBC Wood Gundy unit. The acquisition price is between $475-$650 million, but the final purchase price is expected to be between $500-$600, according to CIBC.
The brokerage and securities services part of the deal is expected to be completed by Dec. 31, CIBC said. The asset management transaction, which includes the sale of Merrill Lynch Investment Managers Canada, manager of 41 Merrill Lynch mutual funds, is expected to be completed by Jan. 31 2002. The transaction is pending regulatory approval.