Butterfield has announced a definitive agreement to acquire CIBC Caribbean in a transaction valued at approximately US$1.8 billion, a move expected to create one of the region’s leading banking institutions serving island economies across the Caribbean and beyond.

The agreement will combine the operations of Butterfield and CIBC Caribbean into a financial group with approximately US$29 billion in combined assets and nearly 400 years of banking experience.

According to the announcement, the acquisition is expected to strengthen banking services across the region by expanding access to corporate, personal and wealth management solutions, while also enhancing digital banking capabilities and cross-border financial services.

Despite the major transaction, customers and employees have been assured that there will be no immediate changes to CIBC Caribbean’s day-to-day operations while the deal remains subject to regulatory approvals and closing conditions.

Following completion of the acquisition, the combined entity intends to maintain the existing operational footprint of both organizations to ensure continuity of service across the Caribbean.

The announcement also noted that CIBC will retain a significant stake in the combined institution, owning approximately 22 percent of the merged entity. CIBC will also appoint two directors to Butterfield’s Board.

Executives said the merger is intended to position the institution as a stronger regional banking platform capable of supporting long-term economic growth and development throughout the Caribbean.

The combined group also pledged to continue supporting philanthropic programmes, financial education initiatives and sustainability efforts across the territories in which it operates.

The transaction marks one of the most significant banking developments in the Caribbean financial sector in recent years and is expected to reshape the regional banking landscape once finalized.