HAMILTON, Bermuda, May 28, CMC – The Bermuda-based Butterfield Bank has announced a landmark US$1.8 billion agreement to acquire CIBC Caribbean, significantly expanding its presence across the region and creating what the institutions describe as the largest independent bank serving island economies.
CIBC Caribbean, headquartered in Barbados and operating in 10 Caribbean countries, is the regional subsidiary of the Canadian Imperial Bank of Commerce (CIBC). Under the agreement, Butterfield will pay US$1.09 billion in cash and approximately US$703 million in Butterfield shares, valuing the transaction at US$1.794 billion, or US$1.14 per CIBC Caribbean share.
Upon completion of the transaction, expected in the first half of 2027, CIBC will retain an estimated 22 per cent ownership stake in the combined entity and will initially have the right to appoint two directors to Butterfield’s board.
The acquisition marks a major strategic expansion for Butterfield, substantially increasing the bank’s scale, geographic reach, and financial services footprint throughout the Caribbean.
In a statement, Butterfield said the merger would create “a leading banking and wealth management platform in international financial centres and attractive Caribbean markets,” with combined assets of approximately US$29 billion.
Butterfield chairman and chief executive officer Michael Collins described the deal as a transformative step for both institutions.
“Since Butterfield’s 2016 listing on the NYSE, we have successfully grown and enhanced profitability through bank and trust acquisitions,” Collins said.
“This deal combines two storied and complementary banks, with significant local scale advantages and time-honoured customer relationships in their respective core jurisdictions.
“The transaction will offer both scale and diversification to the benefit of all stakeholders, positioning Butterfield as a leading independent bank and wealth manager operating across international financial centres and attractive Caribbean markets. I look forward to welcoming our talented new colleagues and valued clients.”
CIBC Caribbean chief executive officer Mark St Hill said the merger aligns two institutions with shared values and a common vision for regional banking.
“For our clients, employees and communities, this combination brings together two organisations with shared values and a common focus on relationship banking, innovating and community impact,” St Hill said. “We look forward to building on our legacy as the region’s champion in financial services.”
CIBC president and chief executive officer Harry Culham praised the regional bank’s leadership and said the transaction would deliver long-term value for stakeholders.
“The entire CIBC Caribbean team led by Mark St Hill has built a strong, client-focused bank across the region, and we look forward to realising the strategic benefits of this transaction to deliver more for all stakeholders,” Culham said.
Under the agreement, unanimously approved by Butterfield’s board of directors, the bank will acquire CIBC Investments (Cayman), the holding company that controls CIBC’s 91.7 per cent stake in CIBC Caribbean.
Butterfield will then launch a mandatory takeover bid for the remaining 8.3 per cent of shares held by minority shareholders, with the aim of securing full ownership of the regional bank, subject to regulatory approvals and applicable laws.
Minority shareholders will receive equivalent economic terms to those offered to CIBC and may elect to receive up to 100 per cent of their consideration in Butterfield shares if they choose to maintain an investment in the combined company.
Financial adviser Houlihan Lokey provided an opinion to CIBC Caribbean’s special committee affirming the fairness of the offer from a financial standpoint.
To support the acquisition, Butterfield has secured commitments for US$700 million in Tier 2 subordinated debt financing. Following the merger, the combined institution is expected to maintain capital levels well above regulatory requirements, including a projected Common Equity Tier 1 ratio above 12 per cent and total capital above 19 per cent at closing.
Butterfield’s shares will continue trading on both the New York Stock Exchange and the Bermuda Stock Exchange. The bank also plans to pursue additional listings on the Barbados Stock Exchange, the Bahamas International Securities Exchange, and the Trinidad and Tobago Stock Exchange, pending regulatory approval.
The Bermuda Monetary Authority will remain the consolidated regulatory supervisor for Butterfield across all jurisdictions in which it operates.
CMC/br/kb/2026